Growth and Welfare Effects of East-West European Migration

Paul Levine (), Emanuela Lotti (), Joseph Pearlman and Richard Pierse

No 1507, School of Economics Discussion Papers from School of Economics, University of Surrey

Abstract: Using a calibrated two-bloc endogenous growth model of the European economy, we assess the growth and welfare impact of East-West European migration of different skill compositions. The East has a lower total factor productivity and a lower endowment of skilled labour. Migration can induce two growth-enhancing effects: an efficiency effect from the more e±cient use of labour in the West and a sectoral reallocation effect from a fall in the Western skilled-unskilled wage rates. Despite growth gains there are both winners (migrants, the representative Western non-migrant household) and losers (the representative Eastern household remaining). Remittances can see the latter group joining the winners.

Keywords: migration; endogenous growth; welfare; immigration surplus; emigration (search for similar items in EconPapers)
JEL-codes: F22 F43 O41 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2007-11
New Economics Papers: this item is included in nep-eec, nep-lab and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:sur:surrec:1507

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