Advertisement

Journal of Population Economics

, Volume 26, Issue 2, pp 531–553 | Cite as

Does emigration benefit the stayers? Evidence from EU enlargement

  • Benjamin Elsner
Original Article

Abstract

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.

Keywords

Emigration EU enlargement Labor mobility 

Notes

Acknowledgements

I am grateful to Gaia Narciso for all her support and encouragement. I would also like to thank the editor, three anonymous referees, Catia Batista, Karol Borowiecki, John FitzGerald, Ulrich Gunter, Julia Anna Matz, Corina Miller, Mrdjan Mladjan, Alfredo Paloyo, Todd Sorensen, Pedro Vicente, and Michael Wycherley, as well as the seminar participants at the 6th ISNE conference in Limerick/IE, the 3rd RGS doctoral conference in Bochum/GER, the 24th Irish Economic Association annual conference in Belfast/UK, and the TCD Development Working Group for helpful comments. The Lithuanian and Irish Statistical Offices were very helpful in providing the data. The author gratefully acknowledges funding from the Irish Research Council for the Humanities & Social Sciences and the Department of Economics at Trinity College Dublin. The paper has been accepted before the author took up a research position at IZA.

Supplementary material

148_2012_452_MOESM1_ESM.pdf (957 kb)
(PDF 957 KB)
148_2012_452_MOESM2_ESM.tex (12 kb)
(TEX 12.2 KB)

References

  1. Aydemir A, Borjas G (2007) Cross-country variation in the impact of international migration: Canada, Mexico and the United States. J Eur Econ Assoc 5(4):663–708CrossRefGoogle Scholar
  2. Barrell R, FitzGerald J, Riley R (2010) EU enlargement and migration: assessing the macroeconomic impacts. J Common Mark Stud 48(2):373–395CrossRefGoogle Scholar
  3. Barrett A (2009) EU enlargement and Ireland’s labour market. In: Kahanec M, Zimmermann KF (eds) EU labor markets after post-enlargement migration. Springer, Berlin, pp 145–161. http://ftp.iza.org/dp4260.pdf CrossRefGoogle Scholar
  4. Bauer TK, Zimmermann KF (1999) Assessment of possible migration pressure and its labour market impact following EU enlargement to central and eastern Europe. IZA Research Report 3Google Scholar
  5. Blanchflower DG, Shadforth C (2009) Fear, unemployment and migration. Econ J 119:136–182CrossRefGoogle Scholar
  6. Boeri T, Brücker H (2001) Eastern enlargement and EU-labour-markets. World Econ 2(1):49–68Google Scholar
  7. Borjas GJ (2003) The labor demand curve is downward sloping: re-examining the impact of immigration on the labor market. Q J Econ 118(4):1335–1374CrossRefGoogle Scholar
  8. Bouton L, Paul S, Tiongson ER (2011) The impact of emigration on source country wages: evidence from the Republic of Moldova. Worldbank Policy Research Working Paper 5764Google Scholar
  9. Brenke K, Yuksel M, Zimmermann KF (2009) Eu enlargement under continued mobility restrictions: consequences for the German labor market. In: Kahanec M, Zimmermann KF (eds) EU labor markets after post-enlargement migration. Springer, BerlinGoogle Scholar
  10. Card D (2001) Immigrant inflows, native outflows and the labor market impact of higher immigration. J Labor Econ 19(1):22–64CrossRefGoogle Scholar
  11. Card D, Lemieux T (2001) Can falling supply explain the rising return to college for younger men? A cohort-based analysis. Q J Econ 116(2):705–46CrossRefGoogle Scholar
  12. Carrington WJ, Detragiache E, Vishwanath T (1996) Migration with endogenous moving costs. Am Econ Rev 86(4):909–930Google Scholar
  13. Clemens MA (2011) Economics and emigration: trillion-dollar bills on the sidewalk? J Econom Perspect 25(3):83–106. doi: 10.1257/jep.25.3.83 CrossRefGoogle Scholar
  14. Constant AF (2012) Sizing it up: labor migration lessons of the EU enlargement to 27. In: Scribani international conference proceedings. Bruylant, Belgium, pp 49–77Google Scholar
  15. Deutscher Bundestag (2004) Entwurf eines gesetzes über den arbeitsmarktzugang im rahmen der eu-erweiterung. Drucksache 15/2672Google Scholar
  16. Drinkwater S, Eade J, Garapich M (2009) Poles apart? EU enlargement and the labour market outcomes of immigrants in the UK. Int Migr 47(1):161–190CrossRefGoogle Scholar
  17. Elsner B (2011) Emigration and wages: the EU enlargement experiment. IZA Discussion Paper 6111Google Scholar
  18. European Commission (2007) The European structural funds (2004–2006). LietuvaGoogle Scholar
  19. Friedberg RM (2001) The impact of mass migration on the Israeli labor market. Q J Econ 116(4):1373–1408CrossRefGoogle Scholar
  20. Friedberg RM, Hunt J (1995) The impact of immigration on host country wages, employment and growth. J Econom Perspect 9(2):23–44CrossRefGoogle Scholar
  21. Gagnon J (2011) “Stay with us?” The impact of emigration on wages in Honduras. OECD Working Paper 300Google Scholar
  22. Hazans M, Philips K (2009) The post-enlargement migration experience in the Baltic labor markets. In: Kahanec M, Zimmermann KF (eds) EU labor markets after post-enlargement migration. Springer, Berlin, pp 255–304CrossRefGoogle Scholar
  23. Home Office (2009) Accession monitoring report, May 2004–December 2008, a8 countries. Home Office ReportGoogle Scholar
  24. Kaczmarczyk P, Mioduszewska M, Zylicz A (2009) Impact of the post-accession migration on the Polish labor market. In: Kahanec M, Zimmermann KF (eds) EU labor markets after post-enlargement migration. Springer, Berlin, pp 219–253CrossRefGoogle Scholar
  25. Kahanec M, Zimmermann KF (eds) (2009) EU labor markets after post-enlargement migration. Springer, BerlinGoogle Scholar
  26. Kahanec M, Zaiceva A, Zimmermann KF (2009) Lessons from migration after EU enlargement. In: Kahanec M, Zimmermann KF (eds) EU labor markets after post-enlargement migration. Springer, Berlin, pp 3–45CrossRefGoogle Scholar
  27. Kerr SP, Kerr WR (2011) Economic impacts of immigration: a survey. Finnish Econ Pap 24(1):1–32. http://www.nber.org/papers/w16736.pdf Google Scholar
  28. Longhi S, Nijkamp P, Poot J (2010) Joint impacts of immigration on wages and employment: review and meta-analysis. J Geogr Syst 12:355–387. doi: 10.1007/s10109-010-0111-y CrossRefGoogle Scholar
  29. McKenzie D, Rapoport H (2010) Self-selection patterns in Mexico–US migration: the role of migration networks. Rev Econ Stat 92(4):811–821CrossRefGoogle Scholar
  30. Mishra P (2007) Emigration and wages in source countries: evidence from Mexico. J Dev Econ 82:180–199CrossRefGoogle Scholar
  31. Saleheen J, Shadforth C (2006) The economic characteristics of immigrants and their impact on supply. Bank of Engl Q Bull Q4:373–385Google Scholar
  32. Sinn HW (2004) Eu enlargement, migration, and the new constitution. CESifo Working Paper 1367Google Scholar
  33. Solow RM (1956) A contribution to the theory of economic growth. Q J Econ 70(1):65–94. http://www.jstor.org/stable/1884513 CrossRefGoogle Scholar
  34. Wadensjö E (2007) Migration to Sweden from the new EU member states. IZA Discussion Paper 3190Google Scholar
  35. Zaiceva A, Zimmermann KF (2008) Scale, diversity and determinants of labour migration in Europe. Oxf Rev Econ Policy 24(3):428–452. doi: 10.1093/oxrep/grn028 CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Institute for the Study of Labor (IZA)BonnGermany

Personalised recommendations