Does migration depress regional human capital accumulation in the EU’s new member states? Theoretical and empirical evidence

Abstract

During the first decade of the present century the countries which accessed the EU were characterised by high GDP growth rates while most of their regions displayed negative net-migration rates. At the same time, the new member states’ human capital endowments were high relative to their GDP levels, creating incentives to emigrate. The present paper takes a detailed look at the interplay of regional human capital endowments and migration. First, by theoretically examining migration’s determinants and second, by testing the corresponding findings via panel econometric regressions for the EU’s new member states’ regions. The results display positive impacts of net-migration on regional human capital growth rates, improving the economic potential of thriving regions but possibly increasing disparities within countries.