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Economic impact of migration flows following the 2004 EU enlargement process - A model based analysis

  • Francesca D'Auria
  • Kieran Mc Morrow
  • Karl Pichelmann

This paper shows that the migration-induced re-allocation of labour resources across countries following the 2004 EU enlargement process has already brought sizeable economic benefits for the enlarged EU. In addition, the simulation results suggest that once the present temporary restrictions on the flow of EU10 workers come to an end and the long-run migration potential of around 3 million is eventually realised, the economic gains may easily match those from a further integration of the EU's goods and capital markets. At the level of the individual "sending" and "receiving" countries, the overall economic impact of migration is essentially determined by the speed of adjustment of labour and capital; by the skill characteristics of the migrant and native populations; and by the actual size of the migration flows.

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File URL: http://ec.europa.eu/economy_finance/publications/publication13389_en.pdf
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Paper provided by Directorate General Economic and Financial Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 349.

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Length: 32 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:euf:ecopap:0349
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  1. George J. Borjas, 2001. "Does Immigration Grease the Wheels of the Labor Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 69-134.
  2. Barrett, Alan & Bergin, Adele & Duffy, David, 2005. "The Labour Market Characteristics and Labour Market Impacts of Immigrants in Ireland," IZA Discussion Papers 1553, Institute for the Study of Labor (IZA).
  3. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Report No. 3: Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute for the Study of Labor (IZA).
  4. Alan Barrett & Yvonne McCarthy, 2007. "Immigrants in a Booming Economy: Analysing Their Earnings and Welfare Dependence," LABOUR, CEIS, vol. 21(4-5), pages 789-808, December.
  5. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  6. Rebecca Riley & Ray Barrell, 2007. "EU enlargement and migration: Assessing the macroeconomic impacts," NIESR Discussion Papers 1491, National Institute of Economic and Social Research.
  7. Werner Roeger & Janos Varga & Jan in 't Veld, 2008. "Structural Reforms in the EU: A simulation-based analysis using the QUEST model with endogenous growth," European Economy - Economic Papers 351, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  8. Stephen Drinkwater & John Eade & Michal Garapich, 2006. "Poles Apart? EU Enlargement and the Labour Market Outcomes of immigrants in the UK," School of Economics Discussion Papers 1706, School of Economics, University of Surrey.
  9. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
  10. Ratto, Marco & Roeger, Werner & Veld, Jan in 't, 2009. "QUEST III: An estimated open-economy DSGE model of the euro area with fiscal and monetary policy," Economic Modelling, Elsevier, vol. 26(1), pages 222-233, January.
  11. repec:nsr:niesrd:292 is not listed on IDEAS
  12. David Duffy & John Fitz Gerald & Ide Kearney, 2005. "Rising House Prices in an Open Labour Market," The Economic and Social Review, Economic and Social Studies, vol. 36(3), pages 251-272.
  13. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the British Labour Market," Economic Journal, Royal Economic Society, vol. 115(507), pages F324-F341, November.
  14. Dora M. Iakova, 2007. "The Macroeconomic Effects of Migration From the New European Union Member States to the United Kingdom," IMF Working Papers 07/61, International Monetary Fund.
  15. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
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