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The Post-Enlargement Migration Experience in the Baltic Labor Markets

  • Hazans, Mihails

    ()

    (University of Latvia)

  • Philips, Kaia

    ()

    (University of Tartu)

We use Lithuanian, Latvian and Estonian LFS data (2002-2007) complemented with several other surveys to compare the profile of Baltic temporary workers abroad before and after EU accession with that of stayers and return migrants. Determinants of migration and return, as well as selection issues are discussed. Post-enlargement migrants from all three countries were significantly less educated than stayers. After accession, medium-educated workers were most likely to move, other things equal, and human capital became increasingly less pro-migration over time. Return migrants differ from all movers in many ways and, in particular, are more educated. Although brain drain was not a feature of post-accession Baltic migration, brain waste was: during 2006-2007, the proportion of overqualified among high-educated movers ranged from five out of ten for Latvia to seven out of ten for Lithuania, but it was around one fifth among high-educated stayers in all three countries. We find that the free movement of labor partially introduced in 2004 (and expanded in 2006) for EU citizens, although excluding Baltic non-citizens, brought about significant changes in how ethnicity and citizenship affect workers' mobility. We conclude by discussing migration perspectives in the context of recession.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5878.

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Length: 49 pages
Date of creation: Jul 2011
Date of revision:
Publication status: published in: Martin Kahanec and Klaus F. Zimmermann (eds), EU Labor Markets After Post-Enlargement Migration, Berlin - Heidelberg: Springer, 2009, 255-304
Handle: RePEc:iza:izadps:dp5878
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  1. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence from the UK," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 236-256, 06.
  2. Hazans, Mihails, 2003. "Determinants of inter-regional migration in the Baltic countries," ZEI Working Papers B 17-2003, ZEI - Center for European Integration Studies, University of Bonn.
  3. Christian Dustmann & Yoram Weiss, 2007. "Return Migration: Theory and Empirical Evidence," CReAM Discussion Paper Series 0702, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  4. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
  5. Zimmermann, Klaus F. & Kahanec, Martin & Constant, Amelie F. & DeVoretz, Don J. & Gataullina, Liliya & Zaiceva, Anzelika, 2008. "Report No. 16: Study on the Social and Labour Market Integration of Ethnic Minorities," IZA Research Reports 16, Institute for the Study of Labor (IZA).
  6. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
  7. Brücker, Herbert & Jahn, Elke J., 2008. "Migration and the Wage Curve: A Structural Approach to Measure the Wage and Employment Effects of Migration," IZA Discussion Papers 3423, Institute for the Study of Labor (IZA).
  8. Barrett, Alan & McGuinness, Seamus & O`Brien, Martin, 2008. "The Immigrant Earnings Disadvantage across the Earnings and Skills Distributions: The Case of Immigrants from the EU’s New Member States in Ireland," IZA Discussion Papers 3479, Institute for the Study of Labor (IZA).
  9. David G. Blanchflower & Chris Shadforth, 2007. "Fear, Unemployment and Migration," NBER Working Papers 13506, National Bureau of Economic Research, Inc.
  10. Barrett, Alan, 2009. "EU Enlargement and Ireland's Labour Market," IZA Discussion Papers 4260, Institute for the Study of Labor (IZA).
  11. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2009. "Lessons from Migration after EU Enlargement," IZA Discussion Papers 4230, Institute for the Study of Labor (IZA).
  12. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non-citizens in the EU: An East-West comparison," International Journal of Manpower, Emerald Group Publishing, vol. 30(1/2), pages 97-115, May.
  13. Blanchflower, David G & Oswald, Andrew J, 1994. "Estimating a Wage Curve for Britain: 1973-90," Economic Journal, Royal Economic Society, vol. 104(426), pages 1025-43, September.
  14. Mihails Hazans & Ija Trapeznikova & Olga Rastrigina, 2008. "Ethnic and parental effects on schooling outcomes before and during the transition: evidence from the Baltic countries," Journal of Population Economics, Springer, vol. 21(3), pages 719-749, July.
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