The Economic Impact of East‐West Migration on the European Union

33 Pages Posted: 5 Dec 2016

See all articles by Martin Kahanec

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Mariola Pytliková

Central European Labour Studies Institute (CELSI); VSB - Technical University of Ostrava - Faculty of Economics; University College London - CReAM - Centre for Research and Analysis of Migration; IZA Institute of Labor Economics; Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Abstract

This study contributes to the literature on destination‐country consequences of international migration with investigations on the effects of immigration from new EU member states and Eastern Partnership countries on the economies of old EU member states over the years 1995‐2010. Using a rich international migration dataset and an empirical model accounting for the endogeneity of migration flows we find positive and significant effects of post‐enlargement migration flows from new EU member states on old member states' GDP, GDP per capita, and employment rate and a negative effect on output per worker. We also find small, but statistically significant negative effects of migration from Eastern Partnership countries on receiving countries' GDP, GDP per capita, employment rate, and capital stock, but a positive significant effect on capital‐to‐labor ratio. These results mark an economic success of the EU enlargements and EU's free movement of workers.

Keywords: EU enlargement, free mobility of workers, migration impacts, European Single Market, east‐west migration, Eastern Partnership

JEL Classification: J15, J61, J68

Suggested Citation

Kahanec, Martin and Pytliková, Mariola, The Economic Impact of East‐West Migration on the European Union. IZA Discussion Paper No. 10381. Available at SSRN: https://ssrn.com/abstract=2879788

Martin Kahanec (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
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Germany

Central European University ( email )

Nador utca 9
Budapest, H-1051
Hungary

Central European Labour Studies Institute ( email )

Zvolenská 29
Bratislava, 82109
Slovakia

HOME PAGE: http://www.celsi.sk

Mariola Pytliková

Central European Labour Studies Institute (CELSI) ( email )

Zvolenská 29
Bratislava, 82109
Slovakia

VSB - Technical University of Ostrava - Faculty of Economics ( email )

Sokolska 33
Ostrava 1, 701 21
Czech Republic

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic

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