Labour mobility in the EU and the effect on employment

In this research a general labour market equilibrium model is used to investigate the effect of migration on employment. With the use of the eastern- to western-Europe migration flow data an empirical study is set up. According to the theory it is expected that in the short-run the employment rate of natives declines while the total employment rate is expected to rise. In the long-run it is expected that both native- and total employment rate rise. The findings in this research however contradict each other and did not find any consistent evidence on the effect of migration on employment.