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Influence Of Labour Migration On Latvia’s Labour Market

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  • Skribans, Valerijs

Abstract

This paper shows system dynamic model of labour market and labour migration in Latvia. The hypothesis of the research is: labour migration is determined primarily by the payment level in the countries under consideration and the indicator derived from it – payment differences in the countries compared; as well as employment level, unemployment level, number of work places (market capacity) and number of vacant work places. Secondary factors influencing migration may be costs connected with labour migration, formal legal barriers to migration and personal propensity to migrate. Statistics on the labour market in Latvia are not complete; there is also no common view of experts on determinant processes. In such circumstances market forecasting with quantitative methods is problematic. One approach is to simulate indicators and to estimate their influence on national economy. The model has three parts: growth (expansion) of labour force, division and migration sub models. The sub model for growth of labour force is based on division of population in various categories during transition to a working age population. Division by level of education is further used in labour market analysis in which worker groups are formed according to the education level. The paper represents mutual interaction of groups of workers as well as labour migration. The results show sensitivity of the model factors to propensity of personnel for labour migration.

Suggested Citation

  • Skribans, Valerijs, 2009. "Influence Of Labour Migration On Latvia’s Labour Market," MPRA Paper 16596, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:16596
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    References listed on IDEAS

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    1. Skribans, Valerijs, 2009. "Modelling crediting volume by using the system dynamic method," MPRA Paper 16353, University Library of Munich, Germany.
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    Cited by:

    1. Skribans, Valerijs, 2011. "Development of System Dynamic Model of Latvia’s Economic Integration in the EU," MPRA Paper 34565, University Library of Munich, Germany.
    2. Skribans, Valerijs, 2010. "Investments model development with the system dynamic method," MPRA Paper 27235, University Library of Munich, Germany.
    3. Skribans, Valerijs, 2009. "Latvijas būvniecības industrijas resursu problēmas vienotā Eiropā
      [Latvian building industry resources problems in European Union]
      ," MPRA Paper 20392, University Library of Munich, Germany.
    4. Skribans, Valerijs, 2011. "Разработка Модели Системной Динамики Для Энергетического Сектора В Латвии
      [Development of system dynamics model for the energy sector in Latvia]
      ," MPRA Paper 39251, University Library of Munich, Germany.
    5. Skribans, Valerijs, 2010. "Latvijas iestāšanās Eiropas Savienībā ekonomiskā efekta novērtēšana
      [Estimation of Economic Benefit of the Introduction of Latvia in the European Union]
      ," MPRA Paper 29313, University Library of Munich, Germany.

    More about this item

    Keywords

    system dynamic; labour migration; labour market; salary level;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • D0 - Microeconomics - - General
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C0 - Mathematical and Quantitative Methods - - General
    • J0 - Labor and Demographic Economics - - General

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