Modelling the Effects of Immigration on Regional Economic Performance and the Wage Distribution: A Cge Analysis of Three EU Regions

40 Pages Posted: 22 Dec 2009

See all articles by Konstantinos Pouliakas

Konstantinos Pouliakas

Cedefop; University of Aberdeen - Business School; IZA Institute of Labor Economics

Deborah Roberts

affiliation not provided to SSRN

Eudokia Balamou

affiliation not provided to SSRN

Demetrios Psaltopoulos

affiliation not provided to SSRN

Abstract

The paper uses a regional Computable General Equilibrium (CGE) model to analyse the effects of immigration on three small remote EU regions located within Scotland, Greece and Latvia. Two migration scenarios are assessed. In the first, total labour supply is affected. In the second, the importance of migratory flows by differential labour skill types is investigated. The results indicate significant differences in the extent to which regional economies are affected by immigration. They also suggest that remote regions are highly vulnerable to the out-migration of skilled workers ('brain-drain') while the in-migration of unskilled workers leads to widening wage inequality.

Keywords: immigration, CGE, skills, wage inequality, brain-drain, regional economies

JEL Classification: D33, D58, R13, R23

Suggested Citation

Pouliakas, Konstantinos and Roberts, Deborah and Balamou, Eudokia and Psaltopoulos, Demetrios, Modelling the Effects of Immigration on Regional Economic Performance and the Wage Distribution: A Cge Analysis of Three EU Regions. IZA Discussion Paper No. 4648, Available at SSRN: https://ssrn.com/abstract=1526078

Konstantinos Pouliakas (Contact Author)

Cedefop ( email )

PO Box 22427
Finikas (Thessaloniki), 55102
Greece

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Deborah Roberts

affiliation not provided to SSRN

No Address Available

Eudokia Balamou

affiliation not provided to SSRN

Demetrios Psaltopoulos

affiliation not provided to SSRN

No Address Available

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