migration, labour market, macro-model

Migration in Europe

In order to assess the economic impact of immigration, we have used our macro model, NiGEM to simulate an increase in Polish emigration amounting to about 4 per cent of the population of that country towards Germany and the UK. We have demonstrated that both host countries adjust to immigration flows in a similar way, although Germany reacts somewhat more slowly than the UK. Both economies settle to new equilibria with higher output and no permanent change to the unemployment rate.