Search Equilibrium with Migration: the Case of Poland
The EU enlargement has facilitated labour force movements between the former EU member countries and the accession countries. Foremost, the outflow of workers from the new member countries to countries which introduced open-door policy has magnified. The aim of the paper is to shed some light on the possible effects of reinforced emigration from Poland on its labour market. In particular, it focuses on the impact of the migration flows on wages. The wage equation derived from the search and matching model augmented with migration flows (emigration and the return migration) was estimated employing Bayesian inference. It allowed calculating an approximate magnitude of emigration of workers and describing the impact the labour movements should have had on the real wage in Poland. From 2002 to 2006 the number of temporary emigrants increased by roughly 4.5% of the Polish population whereas the resulting increase in the real wage was moderate and amounted to over 1%. The implied elasticity of wages to reduction of the workforce due to emigration between 2003 and 2006 was in the range of 0.2–0.3. Mediocre response of wages to emigration corresponds well with earlier studies on the impact of emigration on the source country wage rate. Yet, the explanation of the limited impact of emigration on wages lies in the adjustment of the demand for labour in the steady-state and substantial intensity of the return migration predominantly to employment found in the data.
|Date of creation:||Mar 2008|
|Date of revision:|
|Contact details of provider:|| Postal: 00-919 Warszawa ul. Świętokrzyska 11/21|
Phone: (0-22) 653 10 00
Fax: (0-22) 620 85 18
Web page: http://www.nbp.pl/Homen.aspx?f=/en/publikacje/materialy_i_studia/informacja_en.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lawrence F. Katz & Olivier Blanchard, 1999.
"Wage Dynamics: Reconciling Theory and Evidence,"
American Economic Review,
American Economic Association, vol. 89(2), pages 69-74, May.
- Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006.
"The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links,"
NBER Working Papers
12167, National Bureau of Economic Research, Inc.
- Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006. "The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 3-26, Summer.
- Abdurrahman Aydemir & George J. Borjas, 2006. "A Comparative Analysis of the Labor Market Impact of International Migration: Canada, Mexico, and the United States," NBER Working Papers 12327, National Bureau of Economic Research, Inc.
- van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-55, April.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004.
"A Meta-Analytic Assessment of the Effect of Immigration on Wages,"
Tinbergen Institute Discussion Papers
04-134/3, Tinbergen Institute.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, 07.
- Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Population Studies Centre Discussion Papers dp-47, University of Waikato, Population Studies Centre.
- Ray Barrell & John FitzGerald & Rebecca Riley, 2007.
"EU Enlargement and Migration: Assessing the Macroeconomic Impacts,"
WP203, Economic and Social Research Institute (ESRI).
- Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 373-395, 03.
- Rebecca Riley & Ray Barrell, 2007. "EU enlargement and migration: Assessing the macroeconomic impacts," NIESR Discussion Papers 292, National Institute of Economic and Social Research.
- Abowd, John M & Zellner, Arnold, 1985. "Estimating Gross Labor-Force Flows," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(3), pages 254-83, June.
- van Ours, J.C. & Ridder, G., 1992. "Vacancies and recruitment of new employees," Other publications TiSEM 9acc708a-0885-46a2-aef5-7, Tilburg University, School of Economics and Management.
- Frigyes Ferdinand Heinz & Melanie Ward-Warmedinger, 2006. "Cross-border labour mobility within an enlarged EU," Occasional Paper Series 52, European Central Bank.
- Wouter J. den Haan & Garey Ramey & Joel Watson, 1997.
"Job Destruction and Propagation of Shocks,"
NBER Working Papers
6275, National Bureau of Economic Research, Inc.
- Wouter Denhaan & Garey Ramey & Joel Watson, 1997. "FORTRAN code for Job Destruction and Propagation of Shocks," QM&RBC Codes 61, Quantitative Macroeconomics & Real Business Cycles.
- David Blanchflower & Jumana Saleheen & Chris Shadforth, 2007.
"The impact of the recent migration from Eastern Europe on the UK economy,"
17, Monetary Policy Committee Unit, Bank of England.
- Blanchflower, David G. & Saleheen, Jumana & Shadforth, Chris, 2007. "The Impact of the Recent Migration from Eastern Europe on the UK Economy," IZA Discussion Papers 2615, Institute for the Study of Labor (IZA).
- Gordon H. Hanson, 2005.
"Emigration, Labor Supply, and Earnings in Mexico,"
NBER Working Papers
11412, National Bureau of Economic Research, Inc.
- Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
- 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.
- Drinkwater, Stephen & Eade, John & Garapich, Michal, 2006. "Poles Apart? EU Enlargement and the Labour Market Outcomes of Immigrants in the UK," IZA Discussion Papers 2410, Institute for the Study of Labor (IZA).
- M. J. Andrews & S. Bradley & D. Stott & R. Upward, 2008. "Successful Employer Search? An Empirical Analysis of Vacancy Duration Using Micro Data," Economica, London School of Economics and Political Science, vol. 75(299), pages 455-480, 08.
- repec:ags:afjare:141665 is not listed on IDEAS
- John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, January.
- Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, June.
- repec:nsr:niesrd:292 is not listed on IDEAS
- Rachel M. Friedberg & Jennifer Hunt, 1995.
"The Impact of Immigrants on Host Country Wages, Employment and Growth,"
Journal of Economic Perspectives,
American Economic Association, vol. 9(2), pages 23-44, Spring.
- Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:nbp:nbpmis:45. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ewa Szymecka)
If references are entirely missing, you can add them using this form.