Migration and earnings in emigrant and immigrant countries - the case of Europe

Abstract

Migration flows within Europe intensified after the EU enlargement that enabled easier procedures for finding a job in another country. Among the various effects that migration can have on emigrant and immigrant economies, this paper aims to focus on and quantify the impact of migration flows on income levels in both groups of countries. The research covers the period of 2006-2019 and applies dynamic panel data analysis, the results of which highlight that the number of emigrants has a statistically significant impact on earnings in immigrant countries, while the number of immigrants has no significant effects. On the other hand, migration variables do not indicate a statistically significant impact on the earnings of any household type in the group of emigrant countries, whereas macroeconomic variables have a strong impact.