Macrodeterminants of Labor Migration from CEE Accession Countries to Select EU Countries

This dissertation provides a comprehensive and evidentiary theoretical framework on the economic forces behind labor migration among Central and Eastern European (CEE) economies and the impact of said labor migration on European Union (EU) economies. Specifically, this dissertation limits the scope of its discussion as to the nature of macroeconomic effects of CEE migration to the selected destination countries: of the United Kingdom, Ireland, France, Germany, Denmark, and Sweden. Labor flows between the EU and the CEE region seem to be a response to poorly functioning labor markets, insufficient productive capital, a relatively low quality of life, and an increasing demand for low-skilled labor in the EU economies. The empirical analysis is based on the A8 and A2 (collectively the A10) countries, which are used to assess the interconnection between economic decline and economic migration in the post-Soviet era. Accession to the EU has created interest in the causes and consequences of migration to and between A10 countries and Western Europe. By understanding the economic rationale and the determinants’ interaction concerning migration, conclusions may be drawn about labor mobility and its impact on destination countries. Direct empirical estimation of various migration models is considered to determine not only the model’s fit, but also which of several variables (migration stock, wages, short-term unemployment, long-term unemployment, gross domestic product (GDP) per capita, and policies governing migration) may be interpreted as elasticities of migration’s response to the explanatory variables of interest. The results of this study suggest that migration from CEE countries to EU countries increases GDP per capita, lowers wages and increases unemployment