Labour market impacts of post-enlargement migration on hosts and stayers in EU labour markets

Abstract

The eastern enlargements of the EU and the extension of the free movement of labour to the new Member States have provided for increased mobility in the EU. This article reviews the impact of the newly emerged east-west mobility patterns on the labour market options of the labour force in host Member States and stayers in the source countries. The literature generally finds a positive aggregate effect on the host labour force, although micro-level adjustment may create winners and losers and the integration of immigrants has been limited. In spite of the fears of brain drain from the sending countries, empirical evidence also indicates positive effects on wages and employment of the stayers. A study on the effects of husbands’ employment abroad on the labour market status of Slovak women provides additional evidence of positive effects of husbands’ out-migration on their wives’ labour market outcomes. This study concludes that free mobility in an enlarged EU led to an increase in the efficiency of its labour markets.