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Effects of EU Expansion on Migrants Employment and Income: A Natural Experiment

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  • Jan-Jan Soon

Abstract

With the European Union expansion in 2004 providing a unique form of natural experiment, this paper uses the European Values Study data and the difference-in-differences estimation to identify causal effects of the EU expansion on migrants' employment chances and income. Estimation results suggest that the expansion has increased migrants' employment chances and income. The probability of having a full-time employment for a male migrant in the postexpansion period increases by about 7.7 percentage points. The increase in income for male migrants is higher than that of their female counterparts after the expansion. When the income distribution is broken down into quantiles, estimation results show that male migrants at lower ends of the income distribution experience higher increase in income. At the highest end of the income distribution, there is no evidence that the expansion has any significant effect on either male or female migrants´ income.

Suggested Citation

  • Jan-Jan Soon, 2018. "Effects of EU Expansion on Migrants Employment and Income: A Natural Experiment," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(1), pages 113-128.
    • Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:648:p:113-128
    DOI: 10.18267/j.pep.648
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    1. Pedersen, Peder J. & Pytliková, Mariola, 2008. "EU Enlargement: Migration flows from Central and Eastern Europe into the Nordic countries - exploiting a natural experiment," Working Papers 08-29, University of Aarhus, Aarhus School of Business, Department of Economics.
    2. Giovanni Mastrobuoni & Paolo Pinotti, 2011. "Migration Restrictions and Criminal Behavior: Evidence from a Natural Experiment," Working Papers 2011.53, Fondazione Eni Enrico Mattei.
    3. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    European Union expansion; migrant; employment; income; difference-in-differences; quantile regression; natural experiment;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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