Abstract
The paper uses a regional Computable General Equilibrium (CGE) model to analyse the effects of immigration on three small remote EU regions located within Scotland, Greece and Latvia. Two migration scenarios are assessed. In the first, total labour supply is affected. In the second, the importance of migratory flows by differential labour skill types is investigated. The results indicate significant differences in the extent to which regional economies are affected by immigration. They also suggest that remote regions are highly vulnerable to the out-migration of skilled workers (‘brain-drain’) while the in-migration of unskilled workers leads to widening wage inequality.
| Original language | English |
|---|---|
| Pages (from-to) | 318-338 |
| Number of pages | 21 |
| Journal | Regional Studies |
| Volume | 48 |
| Issue number | 2 |
| Early online date | 28 Feb 2012 |
| DOIs | |
| Publication status | Published - 2014 |
Bibliographical note
AcknowledgmentsThe paper is based on research carried out as part of the European Union 6th Framework project ‘TERA’ FP6-SSP-2005-006469. The authors are grateful to Euan Phimister and Daina Saktina for their invaluable contribution to the development of the model used in this paper. Useful comments by members of the European Union project TERA; participants at the IMAEF2008 meeting held at the University of Ioannina (Greece); and of members of a seminar at the University of Cyprus are also gratefully acknowledged; as are comments from the anonymous referees. The usual disclaimer applies.
Keywords
- immigration
- computable general equilibrium (CGE)
- wage inequality
- brain-drain
- regional economies
