Publication detail

Labour migration and welfare effects of free mobility of labour in the common market, in: Mejstřík, M. at al., Social-Eeconomic Models and Policies to Support Active Citizens: Czech Republic and Europe, Chapter 4, Matfyzpress, Prague, 89-102

Author(s): † prof. RNDr. Ing. František Turnovec CSc., Strielkowski, Wadim
Type: Chapter in book
Year: 2008
Number: 0
ISSN / ISBN: ISBN 978-80-7378-074-6
Published in: Mejstřík, M. at al., Social-Economic Models and Policies to Support Active Citizens: Czech Republic and Europe. Matfyzpress, Prague, 89-102.
Publishing place: Prague
Keywords: Common market, labor mobility, Marshallian surplus, propensity to migration, wage differential, welfare effects
JEL codes: F22, J60, C51
Suggested Citation: Strielkowski, W., Tunovec, F. (2008), Labour migration and welfare effects of free mobility of labour in the common market. In: Mejstřík, M. at al., SOCIAL-ECONOMIC MODELS AND POLICIES TO SUPPORT ACTIVE CITIZENS: CZECH REPUBLIC AND EUROPE, Chapter 4, Matfyzpress, Prague, pp. 105-120.
Grants: IES Research Framework Institutional task (2005-2011) Integration of the Czech economy into European union and its development
Abstract: The paper is concerned with political economy models of labor migration in conditions of common market. In the first part the concept of Marshallian surplus is linked with the problem of measuring welfare effects of different regimes of international trade. The second part introduces concept of propensity to migration explaining non-equalization of wages in the common market and investigates welfare effects of free mobility of labor. The third part presents empirical models based on data about migration in the EU of 15. The basic conclusions that stem from this study are: a) Free mobility of labor increases total welfare in both emigration and immigration country, but has different effects for different segments of their societies. b) Contrary to the general neoclassical theory of free mobility of production factors labor migration in common market does not lead to equalization of wages due to different propensities to migration in different countries. c) While the wage differential is significant factor of labor migration, it does not explain fully labor flows between the countries.

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