Macroeconomics of Migration in New Member States
IMF Working Papers, December 1, 2008
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- Macroeconomics of Migration in New Member States
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Bibliographic details
- Authors: Rudolfs Bems, Philip Schellekens
- Published: December 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451871227.001
Summary
- This paper examines the macroeconomic impact of migration on income convergence in the EU's New Member States (NMS).
- The analysis focuses on cross-border mobility of labor and examines implications for policymakers using a general equilibrium model.
- Core finding: cross-border labor mobility provides ample benefits in terms of faster and smoother convergence.
- Identified challenges include containing wage pressures and better mobilizing and utilizing resident labor that does not cross borders.
Key Findings
- Cross-border labor mobility accelerates income convergence between source and destination countries.
- Migration smooths adjustment processes associated with convergence.
- Migration can generate wage pressures that policymakers need to manage.
- A portion of resident labor does not cross borders and requires better mobilization and utilization to fully capture benefits from migration.
Policy Implications and Recommendations
- Facilitate cross-border labor mobility to harness benefits for faster and smoother convergence.
- Implement measures to contain wage pressures associated with increased labor mobility.
- Design policies to mobilize and utilize resident labor that remains in NMS to complement migration-driven gains.
- Use general equilibrium modeling to assess the macroeconomic implications of migration policies.
Content in this bundle
- _wp08264 - References