Research interests
My research focuses on labor economics, especially migration. For my PhD thesis I analyze the impact of migration on the labor markets in the source countries. I recently got interested in network theories, which I aim to apply to the economics of labor markets.
Working Papers
1) Does Emigration Benefit the Stayers? The EU Enlargement as a Natural Experiment. Evidence from Lithuania. ( FEEM Note di Lavoro 2010.151. This paper was honored with the FEEM Award at the EEA Meetings 2010.)
Abstract:
The eastern enlargement of the European Union in 2004 triggered a large flow of migrant workers from the new member states to the UK and Ireland. This paper analyzes the impact of this migration wave on the real wages in the source countries. I consider the case of Lithuania, which had the highest share of emigrants relative to its workforce among all ten new member states. Using data from the Lithuanian Household Budget Survey and the Irish Census, I find that emigration had a significant positive effect on the wages of men who stayed in the country, but no such effect is visible for women. A percentage point increase in the emigration rate increases the real wage of men on average by 1%. Several robustness checks confirm this result.
Work in Progress
2) The Distributional Impact of Emigration. The Case of EU Enlargement. (email me for draft)
Abstract:
The enlargement of the European Union in 2004 caused a large migration wave from
Central Europe to Ireland and the UK. This paper addresses the question whether
such an emigration wave changes the wage distribution in the source country. In a
theoretical model of a labor market I show that some groups of stayers gain, while
others lose from emigration. This outcome depends on the degree of subsitutability
between different groups of workers, as well as on skill distribution of emigrants.
Using microdata on the Lithuanian labor market, I simulate the post-2004 emigration
wave based on the theoretical model and calculate the resulting changes
in wages for different groups of workers. I find that the wages of young workers
increased by around 6% while the wages of older workers decrease by around 2%.
The wage increase for young workers is the result of the supply shift: most of the
emigrants were young, so that young workers who stay behind become a more scarce
resource on the labor market. At the same time, the emigration of young workers
decreases the labor demand for older workers, which results in a decrease of their
wages. These results are important for future EU candidates in order to assess the
costs and benefits of EU accession.
3) The Impact of Networks on Migration Decisions (joint with Jacco Thijssen (University of York))
The enlargement of the European Union in 2004 caused a large migration wave from Central Europe to Ireland and the UK. This paper addresses the question whether such an emigration wave changes the wage distribution in the source country. In a theoretical model of a labor market I show that some groups of stayers gain, while others lose from emigration. This outcome depends on the degree of subsitutability between different groups of workers, as well as on skill distribution of emigrants. Using microdata on the Lithuanian labor market, I simulate the post-2004 emigration wave based on the theoretical model and calculate the resulting changes in wages for different groups of workers. I find that the wages of young workers increased by around 6% while the wages of older workers decrease by around 2%. The wage increase for young workers is the result of the supply shift: most of the emigrants were young, so that young workers who stay behind become a more scarce resource on the labor market. At the same time, the emigration of young workers decreases the labor demand for older workers, which results in a decrease of their wages. These results are important for future EU candidates in order to assess the costs and benefits of EU accession.