Labour migration and its impact on macroeconomic performance in the Baltic countries 2004-2016
ENLabour migration is a bilateral movement of labour force in order to satisfy certain economic benefits (for example, job opportunities, higher salary, career development opportunities, etc.). The impact of labour immigration on macroeconomic performance has been studied by many different researchers because labour immigration increases supply in the labour market, facilitates flexibility of labour market, promotes business development and thus contributes to the economic growth in the country. The impact of labour migration on macroeconomic performance depends on labour migrants’ level of education and qualification. Highly skilled labour migrants are considered more valuable human capital because they promote exchange of knowledge, development of entrepreneurship, investment inflow and the economic growth in the country. Labour emigration, on the one hand, reduces competition in the local labour market but, on the other hand (especially highly qualified labour emigration) – reduces supply in the labour market, increases unemployment rate, causes the demographic problems, reduces the entrepreneurial potential and thereby economic growth in the country. Remittances are one of the positive labour emigration effects. It is believed that remittances can contribute to local inhabitants’ income growth, business development and investment inflow, as well as the economic growth in the country. This effect depends on remittances investment. Therefore topicality of study has been related to determining labour migration impact on macroeconomic performance in the three Baltic countries during 2004–2016. It allows determining the prospects for the development of labour migration and government policy in the future. Key words: labour immigration, labour emigration, employment, unemployment, remittances, Baltic countries.
