Abstract
The economics of migration has demonstrated that there are significant differences between labour markets and real wages in West (WEU) and East European (EEU) union countries (see Ghatak et al., 1996; Hatton and Williamson 1998; OECD, 1997). For instance, social welfare measures providing unemployment, insurance, pension rights and other income support benefits are now much less in the EEU in comparison with the WEU countries. Such differences in labour welfare measures can lead to major behavioural differences in the operations of labour markets. Unemployment may be disguised in the EEU as the marginal (extra) productivity of many jobs (for example, in agriculture and the service sector) may be zero or close to zero. Note that such ‘disguised unemployment’ is not welfare enhancing in the aggregate as observed employment contributes little to the aggregate output or real income.
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© 2001 Subrata Ghatak and Vincent Daly
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Ghatak, S., Daly, V. (2001). East–West European Migration: Questions and Some Answers. In: Ghatak, S., Showstack Sassoon, A. (eds) Migration and Mobility. Palgrave Macmillan, London. https://doi.org/10.1057/9780230523128_3
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DOI: https://doi.org/10.1057/9780230523128_3
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