Emigration and Wages: The EU Enlargement Experiment

This paper studies the impact of a large emigration wave on real wages in the source country. Following EU enlargement in 2004, a large share of the workforce of the Central and Eastern Europe emigrated to Western Europe. Using data from Lithuania for the calibration of a factor demand model I show that emigration had a significant short-run impact on real wages in the source country. In particular, emigration led to a change in the wage distribution between young and old workers. The wages of young workers increased by 6%, whereas the wages of old workers decreased by around 1%. On the contrary, I find no effect on the wage distribution between workers of different education levels.


Issue Date:
2011-11
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/119098
Total Pages:
54
JEL Codes:
F22; J31; O15; R23
Series Statement:
ES
76.2011




 Record created 2017-04-01, last modified 2017-08-26

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