Charles University in Prague Faculty of social sciences Institute of economic studies Four Essays on the Economics of Migration Doctoral Dissertation Wadim Strielkowski Supervisor: Prof. RNDr. Ing. František Turnovec, CSc. Academic Year: 2007/2008 1 Title: Four Essays on the Economics of Migration Author: Wadim Strielkowski Supervisor Prof. RNDr. Ing. František Turnovec, CSc. Institution: Charles University in Prague, Faculty of social sciences, Institute of economic studies Major: Economics Academic Year: 2007/2008 2 I, hereby declare that this dissertation is my original work and that all source materials used here have been clearly identified and referenced. Wadim Strielkowski, undersigned ………………………………… 3 ABSTRAKT Tato diserta ční práce se skládá ze čty ř samostatných empirických studií, které spojuje spole čné téma migrace. První studie se zabývá politicko-ekonomickými modely pracovní migrace v podmínkách jednotného trhu. R ůzné režimy mezinárodního obchodu slouží jako ilustrace k vysv ětlení spot řebitelského přebytku a tzv. „sklon k migraci“ je zaveden a používán jako nástroj k vysv ětlení nevyrovnání mezd na jednotném trhu. Druhá studie se soust řeďuje na migra ční potenciál a „sklon k migraci“. Snaží se zejména prosadit názor, že migrace v různých zemích je podmín ěna r ůznými faktory a že každá zem ě má z řejm ě svůj unikátní migra ční potenciál. Třetí studie se v ěnuje problematice migrací vzešlých z regionálních nebo mezinárodních integra čních proces ů. Migra ční studie často neum ějí najít odpov ěď na otázku, pro č i p řes existenci velkých rozdíl ů v ekonomickém rozvoji mezi zem ěmi z ůstávají migrace na nízké úrovni. Jako p říklad takové modelové situace je použit p řípad slovensko-české migrace po rozpadu Federace. Čtvrtá studie stru čně p řibližuje problematiku azylových migrací slovenských Rom ů do České republiky. Testuje, mezi jiným, jaký vliv na migrace má etnická nebo národnostní p říslušnost. 4 TABLE OF CONTENTS: INTRODUCTION .................................................................................................................................................7 1. PROBLEMS OF MIGRATION IN ECONOMIC THEORY......................................................................11 1.1. GENERAL DEFINITIONS AND TYPES OF MIGRATION ......................................................................................11 1.2. TRENDS OF RECENT MIGRATION ..................................................................................................................13 1.3. THEORETICAL APPROACH TO MIGRATION IN ECONOMIC LITERATURE .........................................................16 1.4. REASONS FOR MIGRATION ...........................................................................................................................21 1.4.1. Comparison of migration policies in Europe .....................................................................................23 1.4.2. Economic effects on employment opportunities of natives .................................................................26 1.5. MIGRATION AND REMITTANCES ..................................................................................................................31 1.6. MIGRATION AND MARKET INTEGRATION .....................................................................................................35 1.6.1. Introduction........................................................................................................................................35 1.6.2. Free mobility of labor in economic theory .........................................................................................36 1.6.3. Labor migration and migration surplus .............................................................................................39 1.7. SELECTED METHODOLOGICAL ISSUES............................................................................................41 1.7.1. CALCULATING MARSHALLIAN SURPLUS ..................................................................................................42 1.7.2. USING BACKWARDS STEPWISE REGRESSION .............................................................................................43 1.8. REFERENCES ...............................................................................................................................................44 2. LABOR MIGRATION AND WELFARE EFFECTS OF FREE MOBILITY OF LABOR IN THE COMMON MARKET.........................................................................................................................................50 2.1. INTRODUCTION ...........................................................................................................................................50 2.2. MARSHALLIAN SURPLUS .............................................................................................................................51 2.3. LABOR MOBILITY BETWEEN TWO COUNTRIES AND THE INDICATOR OF MIGRATION COST ............................53 2.3.1. Propensity to migration and indicator of migration cost ...................................................................55 2.3.2. Welfare considerations.......................................................................................................................58 2.3.3. Illustrative example: numerical model ...............................................................................................59 2.4. EMPIRICAL MODELS ....................................................................................................................................61 2.4.1. Empirical model I...............................................................................................................................61 2.4.2. Empirical model II..............................................................................................................................63 2.5. CONCLUSIONS : POLICY IMPLICATIONS OF FREE MOVEMENT OF LABOR ON THE COMMON MARKET ..............67 2.6. REFERENCES ...............................................................................................................................................68 3. READY TO GO? MIGRATION POTENTIAL AND EU ENLARGEMENT: LESSONS FOR THE CZECH REPUBLIC IN THE CONTEXT OF IRISH MIGRATION EXPERIENCE. ................................70 3.1. INTRODUCTION ...........................................................................................................................................70 3.2. METHODOLOGY & LITERATURE REVIEW .....................................................................................................71 3.2.1. Migration patterns and economic shocks: the case of Ireland...........................................................73 3.2.2. Migration potential of the Czech Republic.........................................................................................75 3.3. DATA ..........................................................................................................................................................77 3.4. EMPIRICAL MODEL ......................................................................................................................................79 3.4.1. Dependence of international (outward) migrations on economic incentives at home........................80 3.4.2. Dependence of regional migrations on economic incentives at home................................................86 3.5. CONCLUSIONS .............................................................................................................................................89 3.6. REFERENCES ...............................................................................................................................................90 3.7. APPENDIX A................................................................................................................................................92 4. WHAT LIVING IS WORTH LEAVING? ACCESSING THE IMPACT OF ECONOMIC INCENTIVES ON MIGRATION FLOWS: THE CASE OF CZECH-SLOVAK LABOR MIGRATION AFTER THE SPLIT-UP OF CZECHOSLOVAKIA .......................................................................................93 4.1. INTRODUCTION ...........................................................................................................................................93 4.2. METHODOLOGY ..........................................................................................................................................94 5 4.2.1. International migration and the role of economic incentives.............................................................94 4.2.2. Countries’ profiles: the split-up of Czechoslovakia and the successor states ....................................96 3.2.3. The implications of Czech-Slovak migrations for the European Union enlargement process. ..........99 4.3. DATA ........................................................................................................................................................102 4.4. EMPIRICAL MODEL ....................................................................................................................................103 4.5. CONCLUSIONS ...........................................................................................................................................111 4.6. REFERENCES .............................................................................................................................................113 5. PEOPLE OF THE ROAD: THE ROLE OF ETHNIC ORIGIN