IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/23048.html
   My bibliography  Save this paper

Open Borders in the European Union and Beyond: Migration Flows and Labor Market Implications

Author

Listed:
  • John Kennan

Abstract

In 2004, the European Union admitted 10 new countries, and wages in these countries were generally well below the levels in the existing member countries. Citizens of these newly-admitted countries were subsequently free to take jobs anywhere in the EU, and many did so. In 2015, a large number of refugees from Syria and other broken countries sought to migrate to EU countries (along very dangerous routes), and these refugees were met with fierce resistance, at least in some places. This paper seeks to understand the labor market implications of allowing free migration across borders, with particular reference to the EU. The aim is to quantify the migration flows associated with EU enlargement, and to analyze the extent to which these flows affected equilibrium wages. The main conclusion is that the real wage effects are small, and the gains from open borders are large.

Suggested Citation

  • John Kennan, 2017. "Open Borders in the European Union and Beyond: Migration Flows and Labor Market Implications," NBER Working Papers 23048, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:23048
    Note: EFG LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w23048.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    2. John Kennan & James R. Walker, 2011. "The Effect of Expected Income on Individual Migration Decisions," Econometrica, Econometric Society, vol. 79(1), pages 211-251, January.
    3. John Kennan, 2015. "Spatial Variation in Higher Education Financing and the Supply of College Graduates," NBER Working Papers 21065, National Bureau of Economic Research, Inc.
    4. Klein, Paul & Ventura, Gustavo, 2009. "Productivity differences and the dynamic effects of labor movements," Journal of Monetary Economics, Elsevier, vol. 56(8), pages 1059-1073, November.
    5. Kjetil Storesletten, 2000. "Sustaining Fiscal Policy through Immigration," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 300-323, April.
    6. Hamilton, Bob & Whalley, John, 1984. "Efficiency and distributional implications of global restrictions on labour mobility : Calculations and policy implications," Journal of Development Economics, Elsevier, vol. 14(1), pages 61-75.
    7. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-987, December.
    8. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    9. Klein Paul & Ventura Gustavo J, 2007. "TFP Differences and the Aggregate Effects of Labor Mobility in the Long Run," The B.E. Journal of Macroeconomics, De Gruyter, vol. 7(1), pages 1-38, May.
    10. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    11. Moses, Jonathon W. & Letnes, Bjorn, 2004. "The Economic Costs to International Labor Restrictions: Revisiting the Empirical Discussion," World Development, Elsevier, vol. 32(10), pages 1609-1626, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ziran Ding & Jose Garcia‐Louzao & Valentin Jouvanceau, 2025. "The dynamics of product and labour market power: Evidence from Lithuania," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 33(1), pages 165-194, January.
    2. Małgorzata Walerych, 2024. "The aggregate and redistributive effects of emigration," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(1), pages 99-143, February.
    3. Lorenzo Caliendo & Luca David Opromolla & Fernando Parro & Alessandro Sforza, 2021. "Goods and Factor Market Integration: A Quantitative Assessment of the EU Enlargement," Journal of Political Economy, University of Chicago Press, vol. 129(12), pages 3491-3545.
    4. Gordon, Grey & Guerron-Quintana, Pablo, 2024. "On regional borrowing, default, and migration," Journal of International Economics, Elsevier, vol. 150(C).
    5. Christian Dustmann & Ian P. Preston, 2019. "Free Movement, Open Borders, and the Global Gains from Labor Mobility," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 783-808, August.
    6. Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Mirela PANAIT, 2017. "Main Developments and Perspectives of the European Union," Romanian Statistical Review, Romanian Statistical Review, vol. 65(2), pages 57-79, June.
    7. Monge-Naranjo, Alexander, 2020. "A Theory of Economic Unions: A Comment," Journal of Monetary Economics, Elsevier, vol. 109(C), pages 128-132.
    8. Ziran Ding & Jose Garcia‐Louzao & Valentin Jouvanceau, 2025. "The dynamics of product and labour market power: Evidence from Lithuania," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 33(1), pages 165-194, January.
    9. Michael A. Clemens & Ethan G. Lewis & Hannah M. Postel, 2018. "Immigration Restrictions as Active Labor Market Policy: Evidence from the Mexican Bracero Exclusion," American Economic Review, American Economic Association, vol. 108(6), pages 1468-1487, June.
    10. Mamertino, Mariano & Sinclair, Tara M., 2019. "Migration and online job search: A gravity model approach," Economics Letters, Elsevier, vol. 181(C), pages 51-53.
    11. Grey Gordon & Pablo Guerrón-Quintana, 2021. "Public Debt, Private Pain: Regional Borrowing, Default, and Migration," Working Paper 21-13, Federal Reserve Bank of Richmond.
    12. Alexandru MANOLE & Radu Titus MARINESCU & Aurelian DIACONU, 2017. "Romania on the road to European integration," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(5), pages 41-50, May.
    13. Madalina-Gabriela Anghel & Constantin Anghelache & Daniel Dumitrescu & Doina Burea & Radu Stoica, 2018. "Analysis of the Effect of Accessing the Community Funds for Financing Investments on Romania's Economic Growth," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(2), pages 102-112, April.
    14. Lili Yao & J. Brandon Bolen & Claudia R. Williamson, 2022. "Are economic arguments against immigration missing the boat? The fiscal effects of the Mariel Boatlift," Southern Economic Journal, John Wiley & Sons, vol. 89(2), pages 305-325, October.
    15. Sargent, Kristina, 2023. "The labor market impacts of Brexit: Migration and the European union," Economic Modelling, Elsevier, vol. 121(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Dustmann & Ian P. Preston, 2019. "Free Movement, Open Borders, and the Global Gains from Labor Mobility," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 783-808, August.
    2. John Kennan, 2013. "Open Borders," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(2), pages 1-13, April.
    3. Michał BURZYŃSKI, 2014. "Trading Goods or Human Capital The Winners and Losers of Economic Integration," LIDAM Discussion Papers IRES 2014022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Biavaschi, Costanza & Burzyński, Michał & Elsner, Benjamin & Machado, Joël, 2020. "Taking the skill bias out of global migration," Journal of Development Economics, Elsevier, vol. 142(C).
    5. Michał Burzyński, 2018. "Trading Goods or Human Capital: The Gains and Losses from Economic Integration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(2), pages 503-536, April.
    6. John Kennan, 2014. "Freedom of movement for workers," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-86, September.
    7. Mandelman, Federico S. & Zlate, Andrei, 2012. "Immigration, remittances and business cycles," Journal of Monetary Economics, Elsevier, vol. 59(2), pages 196-213.
    8. George J. Borjas, 2015. "Immigration and Globalization: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 53(4), pages 961-974, December.
    9. Taiji Furusawa & Hideo Konishi & Duong Lam Anh Tran, 2020. "International Trade and Income Inequality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(3), pages 993-1026, July.
    10. Clemens, Michael A. & Pritchett, Lant, 2019. "The new economic case for migration restrictions: An assessment," Journal of Development Economics, Elsevier, vol. 138(C), pages 153-164.
    11. Costinot, Arnaud & Rodríguez-Clare, Andrés, 2014. "Trade Theory with Numbers: Quantifying the Consequences of Globalization," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 197-261, Elsevier.
    12. Pablo D. Fajgelbaum & Amit K. Khandelwal, 2016. "Measuring the Unequal Gains from Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1113-1180.
    13. Nicola Gagliardi & Benoît Mahy & François Rycx, 2020. "Trade, GVCs, and wage inequality: Theoretical and empirical insights," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 115-134.
    14. Olper, Alessandro & Pacca, Lucia & Curzi, Daniele, 2014. "Trade, import competition and productivity growth in the food industry," Food Policy, Elsevier, vol. 49(P1), pages 71-83.
    15. Amit Khandelwal, 2010. "The Long and Short (of) Quality Ladders," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1450-1476.
    16. Daniel Bernhofen, 2010. "The Empirics of General Equilibrium Tade Theory: What Have we Learned?," CESifo Working Paper Series 3242, CESifo.
    17. Aubry, Amandine & Burzyński, Michał & Docquier, Frédéric, 2016. "The welfare impact of global migration in OECD countries," Journal of International Economics, Elsevier, vol. 101(C), pages 1-21.
    18. Frédéric Docquier & Joël Machado & Khalid Sekkat, 2015. "Efficiency Gains from Liberalizing Labor Mobility," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 303-346, April.
    19. Rodrigo Adao & Paul E. Carrillo & Arnaud Costinot & Dave Donaldson & Dina Pomeranz, 2020. "International Trade and Earnings Inequality: A New Factor Content Approach," Working Papers 2020-182, Becker Friedman Institute for Research In Economics.
    20. Peter M. Morrow, 2008. "East is East and West is West: A Ricardian-Heckscher-Ohlin Model of Comparative Advantage," Working Papers 575, Research Seminar in International Economics, University of Michigan.

    More about this item

    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:23048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.