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Migration of Labor in Europe. Theory and Evidence

Author

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  • Anderson, James

    (Institute for labor economics, University of London and Data Centre for Work and Welfare)

Abstract

The paper studies the impact of migration policy liberalization in the enlarged EU. Adopting a structural NEG approach, we attempt to asses the direction, size and dynamics of potential labor migration after the end of the 'transitional measures', which are restricting the relocation of workers. According to our simulation results, the liberalization of migration policy would induce additional 2 -3 percent of the total EU workforce to change their country of location,with most of migrant workers relocating as expected from East to the West. The average net migration rate is decreasing in the level of integration, and in portugal and the UK the immigration of workers has even reverted to emigration at higher levels of integration, suggesting that from the economic point of view no regulatory policy responses are necessary to labor mobility restrictions inposed on workers from the balkan member States and the Balkan Candidate Countries are obsolete and should be removed with respect to achieving the objectives of the Europe 2020 Growth Strategy.

Suggested Citation

  • Anderson, James, 2011. "Migration of Labor in Europe. Theory and Evidence," Working Papers of Institute for Economic Forecasting 110427, Institute for Economic Forecasting.
    • Handle: RePEc:rjr:wpiecf:110427
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    References listed on IDEAS

    as
    1. D’Artis Kancs, 2005. "Can we use NEG models to predict migration flows? An example of CEE accession countries," Migration Letters, Migration Letters, vol. 2(1), pages 32-63, April.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. Antonio Forte, 2010. "The European Central Bank, the Federal Reserve and the Bank of England: Is the Taylor Rule a useful benchmark for the last decade?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(2), pages 1-31.
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    Cited by:

    1. Fabien Candau & Elisa Dienesch, 2015. "Spatial distribution of skills and regional trade integration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 451-488, March.

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    More about this item

    Keywords

    Labor Migration; Romania;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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