Labour migration in the enlarged EU: a new economic geography approach

Kancs, d’Artis

doi:10.1080/17487870.2011.577648

Cited by 9 publications

(3 citation statements)

References 14 publications

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“…7 The simultaneous increase in the local regional wage triggers in-migration in the years following the initial shock, with the contribution of migration increasing, and wages and the employment rate slowly subsiding. These results are in line with other studies employing the general equilibrium framework for studying labour migration at the regional level (Kancs 2011). Neighbouring regions experience a decrease in transportation costs towards the integrating region, BE24, but simultaneously face an increase in the relative transportation costs towards all other regions.…”

Section: B Symmetric Single Region Integration Scenariosupporting

confidence: 91%

Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO

Brandsma

Kancs

Persyn

2014

JEI

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The paper describes the dynamic spatial general equilibrium model, Regional Holistic MOdeL(RHOMOLO), developed by the European Commission, where the labour market equilibrium is determined by firms' labour demand, unemployment and interregional labour migration. We carry out simulations on the effects of transportation costs on regional labour markets. Our results confirm that wages and unemployment are by far the most important channels of labour market adjustment in the EU. In contrast, labour migration is found to play a secondary role. Also, the complexity and spatially inter-dependent relationship among market access, labour demand, and labour supply is found. It underlines the significance of dynamic spatial general equilibrium approach.

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Section: B Symmetric Single Region Integration Scenariosupporting

confidence: 91%

Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO

Brandsma

Kancs

Persyn

2014

JEI

Self Cite

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“…On the contrary, they do not find any support for those arguments used against immigration in terms of native employment displacement effects and burden on public finances. These results are consistent with findings of Jayet, Ragot, and Rajaonarison (); Kancs (); Jaumotte, Koloskova, and Saxena (); Mongelli and Ciscar (), according to which there are significant long‐term benefits to immigration in terms of a higher GDP per capita for recipient countries. More importantly, both high‐and low‐skill migrants contribute to the GDP per capita increase.…”

Section: Introductionsupporting

confidence: 92%

Long‐term social, economic and fiscal effects of immigration into the EU: The role of the integration policy

Kancs

Lecca

2018

World Economy

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The issues of the forced migration on the one side and the integration of refugees in the EU society and labour markets on the other side are high on the policy agenda. Apart from humanitarian aspects, a sustainable integration of accepted asylum seekers is important also for social, economic, budgetary and other reasons. Although the potential socioeconomic consequences of accepted asylum seekers often are being discussed, little scientific evidence has supported the policy debate in the context of the current refugee crisis in the EU so far. This study attempts to shed light on the long‐run social, economic and budgetary effects of the rapidly increasing forced immigration into the EU by performing a holistic analysis of alternative refugee integration scenarios. Our simulation results suggest that, although the refugee integration, for example, by the providing language and professional training, is costly for the public budget, in the medium to long‐run, the social, economic and fiscal benefits may significantly outweigh the short‐run refugee integration costs. Depending on the integration policy scenario and policy financing method, the annual long‐run GDP effect would be 0.2%–1.6% above the baseline growth.

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“…Accession Treaties allowed for seven-year transitional measures ('derogation') and only Ireland, Sweden and the UK did not use this option; thus, it took time for the impacts of free movement to evolve. Analysing the migration data of countries with both liberal and restrictive transitional arrangements, migration flows seemed significantly lower than what was anticipated prior to the enlargement (Anderson 2015;Barrell et al 2010;Kancs 2011). Due to the open door policy, the UK faced the impacts of the increasing migration influx by the early 2010s (Curtice 2017).…”

Section: Perception Of Intra-eu Mobility In the Literaturementioning

confidence: 97%

A contested foundation of European integration: The free movement of labour

Farkas

Máté

Racz

2022

SocEc

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Since the eastern enlargement of the European Union (EU), the movement from east to west has become the main driver of intra-EU mobility. Recently, the free movement of labour has been contested not only in the debates around Brexit, but also in other receiving countries. It is not on the political agenda, but several studies have highlighted the economic and demographic effects of massive emigration in eastern EU Member States. More recently, the COVID-19 pandemic has disrupted the functioning of free movement. Economic integration theory assumes that migration continues until wages are equalized in the receiving and sending countries. This paper analyses the perception of intra-EU mobility in the literature and empirically tests whether there is a relationship between the dynamism of income growth in the receiving (Germany, Austria and Spain) and sending (Central and Eastern European) countries, and the dynamism of migration. The empirical results do not support the neoclassical assumption that an equalization mechanism can function, even in the long run. To cope with recent challenges, this paper argues that free movement should not be considered as an element of a spontaneous market mechanism, but as an economic-political product, based on a constitutional order.

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Labour migration in the enlarged EU: a new economic geography approach

Cited by 9 publications

References 14 publications

Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO

Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO

Long‐term social, economic and fiscal effects of immigration into the EU: The role of the integration policy

A contested foundation of European integration: The free movement of labour

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