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GTAP Resource #3581

"Economic Implications of Labour Migration and Remittances: The case of Cyprus"
by McDonald, Scott and Yontem Sonmez

Cyprus is one of the ten countries who became an EU member as a result of the Eastern enlargement of the EU in 2004. The EU’s fifth enlargement process induced substantial labour migration from accession states – mostly eastern European – into the states of the EU15. In response a number of EU15 states took steps to limit the migration of labour because of fears about the potential political and economic consequences of increased competition in domestic labour markets. However, no limitations were imposed on the migration of Cypriots to the UK thus encouraging further Cypriot emigration.

This paper reports an analysis of the economy wide effects of changes in both labour migration from Cyprus to Britain and labour remittances to Cyprus by migrant workers. Migrations decisions are endogenised through labour supply functions that respond to changes in the relative wages in EU regions. Due to the past migration patterns and volumes of Cypriot workers, the analyses focuses on labour migration to the UK and the economic implications for Cyprus and the UK.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: McDonald, S. (4/15/2011)
Updated: Batta, G. (5/11/2011)
Visits: 1,461
- Labor market issues
- Europe (Southern)

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