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Journal of Competitiveness

Migration and Labour Market Competitiveness: The Case of EU

Andrej Přívara, Tatiana Masárová, Magdaléna Tupá

immigration, emigration, labour market, competitiveness, unemployment, wages, asylum seekers

The development of the world economy and deepening globalisation lead to intensifying migration processes globally. European Union is the destination country for a significant part of migrants which has a crucial impact on the member-states economies influencing the labour market competitiveness. The goal of the current paper is to estimate the effect of immigration, emigration and migration of asylum seekers on the labour market indicators – unemployment and average annual wage and labour market competitiveness, in selected EU member-states. To achieve the article’s primary goal, we use the method of panel data analysis on yearly data from 2003 to 2019. We developed a fixed-effects model for unemployment and a random effects panel data econometric model for wages to estimate the significance of migration processes for labour market indicators. The results show that the immigration of migrants with high qualifications and high skills has a significant positive impact on the labour market of the recipient country leading to a higher competitiveness. In contrast, the increase in the number of asylum applicants has a slight negative impact, hence harming the competitivesness of the country. On the other hand, the rise in emigration negatively impacts the labour market of the donor country as a result of the “brain drain” leading to a lower competitiveness.

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Přívara, A., Masárová, T., & Tupá, M. (2023). Migration and Labour Market Competitiveness: The Case of EU. Journal of Competitiveness, 15(1), 131-145. https://doi.org/10.7441/joc.2023.01.08

Journal of Competitiveness


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ISSN 1804-171X (Print); eISSN 1804-1728 (On-line)

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