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1262. Computable general equilibrium study of migration in Europe: the cases of Germany and Slovakia

Invited abstract in session MC-28: Advancements of OR-analytics in statistics, machine learning and data science 3, stream Advancements of OR-analytics in statistics, machine learning and data science.

Monday, 12:30-14:00
Room: 065 (building: 208)

Authors (first author is the speaker)

1. Veronika Mitkova
Institute of Economics, Faculty of Social and Economic Sciences, Comenius University in Bratislava

Abstract

The aim of our study is to investigate the effects of migration on wages and incomes, and the impact of more liberal migration policies, which increase labour quotas by 5 per cent. The study focuses on the impact of migration in 21 regions, with particular attention to Slovakia and Germany. The study was based on data from the Global Trade Analysis Project database, using experimental designs by Walmsley, Ahmed and Parsons, and adjusted to capture current global migration flows. According to the findings of the study, the arrival of new, unqualified workers has a negative impact on the actual wages of unqualified residents, with the real wages falling by nearly 3 per cent, and the real wages of skilled workers rising by 0.73 per cent. Similarly, due to the arrival of new qualified immigrants, the real wages of qualified residents have declined by 2.62 per cent, while the real wages of non-qualified immigrants have increased by 0.53 per cent. These results can help policy makers to develop policies aimed at maximizing the benefits of migration. Finally, the study provides a new insight into the wage effects of migration in different areas, particularly in Germany and Slovakia.

Keywords

Status: accepted

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