156 research outputs found

    International migration with heterogeneous agents : theory and evidence

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    "Two puzzling facts of international migration are that only a small share of a sending country's population emigrates and that net migration rates tend to cease over time. This paper addresses these issues in a migration model with heterogeneous agents that features temporary migration. In equilibrium a positive relation exists between the stock of migrants and the income differential, while the net migration flow becomes zero. Consequently, empirical migration models, estimating net migration flows instead of stocks, may be misspecified. This suspicion appears to be confirmed by our empirical investigation of cointegration relationships of flow and stock migration models." (Author's abstract, IAB-Doku) ((en))Herkunftsland, internationale Wanderung - Modell, Wanderungspotenzial, Wanderungsstatistik, Mobilitätsbereitschaft - Determinanten, regionale Mobilität, Einkommensunterschied, Einwanderungsland, Rückwanderung, Rückwanderungsbereitschaft, Aufenthaltsdauer, Migrationstheorie, Stromgrößenanalyse, ökonomische Faktoren, Wanderungsmotivation, Mobilitätsforschung, Europäische Union, Welt

    Can EU Conditionality Remedy Soft Budget Constraints in Transition Countries?

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    Soft budget constraints (SBCs) are a persistent feature of transition economies and have been blamed for i.a. a lack of fiscal consolidation and sluggish growth. EU eastward enlargement has - among other things - been conditioned on tackling SBCs. This paper analyzes such outside conditionality theoretically and empirically. First, modelling the SBC problem as a war of attrition between the applicant countries' governments and firms we find that outside conditionality can foster SBC hardening. Yet, toughening the EU stance or reducing the number of enlargement rounds may have ambiguous effects. Second, estimating SBC hardening in a partial adjustment model by measuring the reaction of employment to output changes we find that EU conditionality did indeed help candidates to fight SBCs.soft budget constraint, EU enlargement, war of attrition

    Doorkeepers and Gatecrashers: EU Enlargement and Negotiation Strategies

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    This paper discusses the eastward enlargement process of the EU in the framework of a simple war of attrition bargaining game. Both players - the existing EU members and the applicants - benefit from enlargement, yet for the applicants reform to the acquis is costly, while the EU prefers substantially reformed candidates. A waiting game unfolds. Within this framework the present enlargement round is analyzed and policy results are deduced. For example, it is shown that delegating the evaluation of applicants to a third party, compensating applicants for their reform efforts or increasing the benefits for new members are all effective negotiation strategies for the EU that have been applied in the process.EU enlargement, eastern enlargement, bargaining, reform, war of attrition.

    Regional and labour market development in candidate countries: a literature survey

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    There has been substantial convergence of candidate countries to Western European institutions and labour market outcomes. Despite this, the labour markets in the candidate countries have their individual features: long and persistent reductions in employment rates as well as a higher incidence of long-term unemployment; more severe mass redundancy regulations and weaker trade unions and social partnership organisations; low turnover in and out of unemployment; and declining internal migration. Accession will trigger institutional changes by the social acquis, environmental and competition policy as well as – at a later stage – accession to EMU, the impact of the EU's structural policy on the candidate countries, and changes in trade, foreign direct investment and migration. In assessing the consequences of these changes, literature is far from unanimous, but some hypotheses can be developed: 1. Integration will have important structural and distributional effects and positive aggregate effects. 2. The capability of labour markets to adjust to such shocks will determine the labour market outcomes of integration. 3. Extrapolating purely from the current labour market dynamics to a time after enlargement may lead to misinterpretations, since "adjustment mechanisms" are endogenous. 4. National policy decisions and use of structural funds are a key in triggering regional convergence. Regional issues should be given attention when analysing integration effects. Experience from previous enlargements suggests that convergence is far from automatic after accession. Policy takes a decisive role in determining the outcomes. Regional development in candidate countries suggests some potential for further divergence
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