Macroeconomic Consequences of a Labour Supply Shock. A Simulation Study of the Austrian Experience in 1990 and 1991

Abstract

In recent years issues of international migration have been pushed to the forefront of economic policy agenda in many European countries. After stagnating during the first half of the Eighties, migrant flows into Western Europe have increased substantially in the second part of the decade. Even Southern European countries like Italy, Spain and Portugal, which used to be traditional sending countries of migrant workers, have now become net immigration countries. Additionally, the already apparent rise in migration pressures from developing countries is likely to be strongly accerbated by the emergence of new sending countries in Eastern Europe.

Revised version of a paper presented at the University of Siena, November 1991. We are indebted to Franz Hof and several other conference participants for helpful comments and suggestions. Of course, the usual disclaimer applies.