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Migration to the EU: Social and Macroeconomic Effects on Sending Countries

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  • Pavel Ciaian
  • d'Artis Kancs
  • Julda Kielyte

Abstract

In June 2016, the European Commission issued a new EU Blue Card proposal. This proposal is meant to make the EU more attractive for highly qualified workers from third countries. While strengthening the knowledge economy of the EU, the potential impacts of the new Blue Card proposal on developing countries are less known. The present study attempts to shed light on potential challenges and opportunities for developing countries by analysing conceptually the potential socio-economic impacts of the new EU Blue Card proposal. Our results suggest that the EU Blue Card may reduce the human capital, the knowledge capital, and hence growth and development prospects in developing countries, if not accompanied by appropriate policy measures. We identify and examine a number of policy measures, which could help turning the sending country challenges into opportunities. Our results suggest that policies implemented on the demand side of the labour market are more efficient than policies that address the supply side of the labour market, though they are less costly to implement. Developing countries can also benefit from the knowledge diffusion from the EU, if sufficient human resources are available to use this knowledge.

Suggested Citation

  • Pavel Ciaian & d'Artis Kancs & Julda Kielyte, 2016. "Migration to the EU: Social and Macroeconomic Effects on Sending Countries," EERI Research Paper Series EERI RP 2016/09, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2016_09
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2016_09.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pavel Ciaian & d’Artis Kancs, 2015. "Assessing the Social and Macroeconomic Impacts of Labour Market Integration: A Holistic Approach," JRC Working Papers JRC99645, Joint Research Centre (Seville site).
    2. Marco Di Cintio & Emanuele Grassi, 2016. "The returns to temporary migration: The case of Italian Ph.D.s," EERI Research Paper Series EERI RP 2016/15, Economics and Econometrics Research Institute (EERI), Brussels.

    More about this item

    Keywords

    High-skill migration; EU Blue Card; innovative capital; economic growth; developing countries.;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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