The Effect of Emigration on Unemployment in Source Countries: Evidence from the Central and Eastern European EU Member States
(2011) NEKM01 20101Department of Economics
- Abstract (Swedish)
- This paper empirically examines the effect of emigration on unemployment in the CEE coun-tries of the EU during 2000-2007. It is argued that the enlargement of the EU in 2004 can serve as a natural experiment which helps to prevent the endogeneity of emigration to unem-ployment, since the drastic increase in the East-West migration after the enlargement was mainly driven by political events rather than labour market conditions in the source countries. As an additional measure to address the endogeneity issue I apply the instrumental variables technique, using enlargement as one of the instruments and lagged emigration as another one. The results suggest that emigration has a strong negative effect on unemployment. In particular, a 10%... (More)
- This paper empirically examines the effect of emigration on unemployment in the CEE coun-tries of the EU during 2000-2007. It is argued that the enlargement of the EU in 2004 can serve as a natural experiment which helps to prevent the endogeneity of emigration to unem-ployment, since the drastic increase in the East-West migration after the enlargement was mainly driven by political events rather than labour market conditions in the source countries. As an additional measure to address the endogeneity issue I apply the instrumental variables technique, using enlargement as one of the instruments and lagged emigration as another one. The results suggest that emigration has a strong negative effect on unemployment. In particular, a 10% increase in emigration rate results in around 4% decrease in unemployment rate. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1778806
- author
- Pryymachenko, Yana LU
- supervisor
-
- Klas Fregert LU
- organization
- course
- NEKM01 20101
- year
- 2011
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- instrumental variable, Central and Eastern Europe, unemployment, emigration
- language
- English
- id
- 1778806
- date added to LUP
- 2011-02-14 08:52:16
- date last changed
- 2011-02-14 08:52:16
@misc{1778806, abstract = {{This paper empirically examines the effect of emigration on unemployment in the CEE coun-tries of the EU during 2000-2007. It is argued that the enlargement of the EU in 2004 can serve as a natural experiment which helps to prevent the endogeneity of emigration to unem-ployment, since the drastic increase in the East-West migration after the enlargement was mainly driven by political events rather than labour market conditions in the source countries. As an additional measure to address the endogeneity issue I apply the instrumental variables technique, using enlargement as one of the instruments and lagged emigration as another one. The results suggest that emigration has a strong negative effect on unemployment. In particular, a 10% increase in emigration rate results in around 4% decrease in unemployment rate.}}, author = {{Pryymachenko, Yana}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Effect of Emigration on Unemployment in Source Countries: Evidence from the Central and Eastern European EU Member States}}, year = {{2011}}, }