International Migrations and the Labor Market in EU15 Countries: Lessons from Factor Shares Models

This paper quantifies the impact of migration on wages and employment rates on citizens in EU15 member states. The analysis is based on the generally accepted model of factor shares with endogenous total productivity and labor supply. For all EU15 member states, simulations show that migration generates effects that are positive but weak as regards wages and negligible as regards employment rates. These results are robust to the choice of parameters, the period under investigation, the introduction of illegal migration, and the heterogeneous quality of educational qualifications. In contrast, migration reduces citizens’ wages, especially those of the least skilled people.