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Does Emigration Benefit the Stayers? Evidence from EU Enlargement

Benjamin Elsner ()

No 6843, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Around 9% of the Lithuanian workforce emigrated to Western Europe after the enlargement of the European Union in 2004. I exploit this emigration wave to study the effect of emigration on wages in the sending country. Using household data from Lithuania and work permit and census data from the UK and Ireland, I demonstrate that emigration had a significant positive effect on the wages of stayers. A one percentage-point increase in the emigration rate predicts a 0.67% increase in real wages. This effect, however, is only statistically significant for men.

Keywords: labor mobility; EU enlargement; emigration (search for similar items in EconPapers)
JEL-codes: F22 J61 R23 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2012-09
New Economics Papers: this item is included in nep-eec, nep-eur and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published - published in: Journal of Population Economics, 2013, 26 (2), 531-553

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