Modelling the Effects of Immigration on Regional Economic Performance and the Wage Distribution: A CGE Analysis of Three EU Regions

Konstantinos Pouliakas, Deborah Roberts (), Eudokia Balamou () and Demetrios Psaltopoulos
Additional contact information
Deborah Roberts: University of Aberdeen
Eudokia Balamou: University of Patras

No 4648, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The paper uses a regional Computable General Equilibrium (CGE) model to analyse the effects of immigration on three small remote EU regions located within Scotland, Greece and Latvia. Two migration scenarios are assessed. In the first, total labour supply is affected. In the second, the importance of migratory flows by differential labour skill types is investigated. The results indicate significant differences in the extent to which regional economies are affected by immigration. They also suggest that remote regions are highly vulnerable to the out-migration of skilled workers ('brain-drain') while the in-migration of unskilled workers leads to widening wage inequality.

Keywords: regional economies; brain-drain; immigration; CGE; skills; wage inequality (search for similar items in EconPapers)
JEL-codes: D33 D58 R13 R23 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2009-12
New Economics Papers: this item is included in nep-cmp, nep-geo, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Regional Studies, 2014, 48(2), 318-338

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https://docs.iza.org/dp4648.pdf (application/pdf)

Related works:
Working Paper: Modelling the Effects of Immigration on Regional Economic Performance and the Wage Distribution: A CGE Analysis of Three EU Regions (2008)
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