Unpacking Migration Costs: Heterogeneous Effects in EU Labor Markets
Description
Data and replication files for "Unpacking Migration Costs: Heterogeneous Effects in EU Labor Markets" in Economic Modelling. I employ a tractable two-country search model of unemployment with endogenous migration decisions for workers and apply the model to the context of the European Union. I find that migration costs for workers are important factors in determining migration, unemployment and wages. Increasing migration costs increase unemployment and decrease migration, wages and welfare. This headline result is disaggregated into heterogeneous effects across workers with different countries of origin and migration histories. Workers who move more times, or for longer spells, are more affected by costs than workers who move less or not at all, though non-migrating workers experience changes to their labor market outcomes due to the externalities imposed by migrant workers. Using EU data, I find that costly migration lowers welfare by 11-60% relative to free mobility.
Files
Steps to reproduce
This file describes the data and replication files for "Unpacking Migration Costs: Heterogeneous Effects in EU Labor Markets". Figures Figure 1: Run Stata code "Replication" for Figure 1 Figure 2: Run Stata code "Replication" for Figure 2 Figure 3 PDF made in Microsoft Word Figure 4 Run GAMS code "CompStatsFlow" Export Results to Excel, transpose Export to Stata Run Stata code "Replication" for Figure 4 Figure 5 Run GAMS code "CompStatsLeave" Export Results to Excel, transpose Export to Stata Run Stata code "Replication" for Figure 5 Figure 6 Run GAMS code "CompStatsReturn" Export Results to Excel, transpose Export to Stata Run Stata code "Replication" for Figure 6 Tables Table 1 Definitions Table 2 Parameterization from literature, see text Table 3 Run GAMS code "ApplicationBaseline" Table 4 Use "lfsa_urgan__custom_5236224_spreadsheet.xls" OR DOI: https://doi.org/10.2908/LFSA_URGAN Table 5 Use "lfsa_urgan__custom_5236224_spreadsheet.xls" Sheets 16, 17, 18 OR DOI: https://doi.org/10.2908/LFSA_URGAN Then run GAMS code "ApplicationBaseline" Table 6 Calculations from Baseline Parameterization Table 7 Run GAMS codes: "ApplicationExercises_DoubleCost.gms" "ApplicationExercises_OneHalfCost.gms" "ApplicationExercises_ZeroCost.gms" or Run GAMS code "ApplicationExercises.gms" and remove commenting for relevant cost scenario Table 8 Export results from Table 7 into Excel, combine and calculate for subgroups as detailed in-text OR Use "Application_GAMSData.xlsx" for already formatted version