The aggregate and redistributive effects of emigration

Małgorzata Walerych

Review of World Economics (Weltwirtschaftliches Archiv), 2024, vol. 160, issue 1, No 4, 99-143

Abstract: Abstract The 2004 EU enlargement has triggered large and rapid migration movements from the new to the old member states. The scale of this outflow was unprecedented in the CEE history and its structure was also different from previous emigration waves as it was more heavily biased towards young and educated people. I exploit this post-accession emigration wave to study the aggregate and redistributive effects of emigration. Using a small open economy general equilibrium model with heterogeneous agents and endogenous migration choice calibrated to Polish data, I show that emigration lowers output per capita and improves the international investment position of the source country. Changes in population structure resulting from population outflows affect the wage distribution between high-skilled and low-skilled workers, thereby increasing economic inequalities. Moreover, I find that lifting labour mobility barriers is beneficial not only for people who move abroad, but also for skilled never-migrants.

Keywords: Migration; Sending country; Heterogeneous agents; EU accession (search for similar items in EconPapers)
JEL-codes: D31 D58 F22 J61 (search for similar items in EconPapers)
Date: 2024
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Working Paper: The aggregate and redistributive effects of emigration (2021)
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DOI: 10.1007/s10290-022-00491-0

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