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Growth and Welfare Effects of East-West European Migration

Levine, P, Lotti, E, Pearlman, J and Pierse, R Growth and Welfare Effects of East-West European Migration .

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Using a calibrated two-bloc endogenous growth model of the European economy, we assess the growth and welfare impact of East-West European migration of different skill compositions. The East has a lower total factor productivity and a lower endowment of skilled labour. Migration can induce two growth-enhancing effects: an efficiency effect from the more e±cient use of labour in the West and a sectoral reallocation effect from a fall in the Western skilled-unskilled wage rates. Despite growth gains there are both winners (migrants, the representative Western non-migrant household) and losers (the representative Eastern household remaining). Remittances can see the latter group joining the winners.

Item Type: Other
Divisions : Surrey research (other units)
Authors :
Lotti, E
Pearlman, J
Pierse, R
Uncontrolled Keywords : F22, F43, O41, migration, endogenous growth, welfare, immigration surplus, emigration
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:14
Last Modified : 23 Jan 2020 10:26

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