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Does Emigration Benefit the Stayers? Evidence from EU Enlargement

  • Elsner, Benjamin

    ()

    (IZA)

Around 9% of the Lithuanian workforce emigrated to Western Europe after the enlargement of the European Union in 2004. I exploit this emigration wave to study the effect of emigration on wages in the sending country. Using household data from Lithuania and work permit and census data from the UK and Ireland, I demonstrate that emigration had a significant positive effect on the wages of stayers. A one percentage-point increase in the emigration rate predicts a 0.67% increase in real wages. This effect, however, is only statistically significant for men.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6843.

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Length: 47 pages
Date of creation: Sep 2012
Date of revision:
Publication status: published in: Journal of Population Economics, 2013, 26 (2), 531-553
Handle: RePEc:iza:izadps:dp6843
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  1. DavidG. Blanchflower & Chris Shadforth, 2009. "Fear, Unemployment and Migration," Economic Journal, Royal Economic Society, vol. 119(535), pages F136-F182, 02.
  2. Elsner, Benjamin, 2011. "Emigration and Wages: The EU Enlargement Experiment," IZA Discussion Papers 6111, Institute for the Study of Labor (IZA).
  3. Abdurrahman Aydemir & George J. Borjas, 2007. "Cross-Country Variation in the Impact of International Migration: Canada, Mexico, and the United States," Journal of the European Economic Association, MIT Press, vol. 5(4), pages 663-708, 06.
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  7. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
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  9. Brenke, Karl & Yuksel, Mutlu & Zimmermann, Klaus F, 2009. "EU Enlargement under Continued Mobility Restrictions: Consequences for the German Labor Market," CEPR Discussion Papers 7274, C.E.P.R. Discussion Papers.
  10. Zaiceva, Anzelika & Zimmermann, Klaus F., 2008. "Scale, Diversity, and Determinants of Labour Migration in Europe," IZA Discussion Papers 3595, Institute for the Study of Labor (IZA).
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  13. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
  14. 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.
  15. Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
  16. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
  17. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-30, September.
  18. Jason Gagnon, 2011. "“Stay With Us?” The Impact of Emigration on Wages in Honduras," OECD Development Centre Working Papers 300, OECD Publishing.
  19. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
  20. Hazans, Mihails & Philips, Kaia, 2011. "The Post-Enlargement Migration Experience in the Baltic Labor Markets," IZA Discussion Papers 5878, Institute for the Study of Labor (IZA).
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