Theoretical and Applied Economics
No. 2 / 2026 (647), Summer
A dynamic panel data analysis of the asymmetric impact of labour cost on intra-EU migration
Bucharest University of Economic Studies, Romania / National Scientific Research Institute for Labour and Social Protection, Romania
Mădălina Ecaterina POPESCU
Bucharest University of Economic Studies, Romania / National Scientific Research Institute for Labour and Social Protection, Romania
Amalia CRISTESCU
Bucharest University of Economic Studies, Romania / National Scientific Research Institute for Labour and Social Protection, Romania
Abstract. This paper investigates the main factors influencing migration inflows within the European Union over the 2013-2024 period. Using a dynamic panel data approach based on the Arellano-Bond GMM estimator, it accounts for persistence in migration patterns and potential endogeneity in socio-economic indicators. The research focuses on the differences between high- and low-inflow countries regarding "push" and "pull" migration factors. Primary results show that labour cost increases act as a significant "pull" factor in high-immigration states, whereas in low-immigration countries it loses statistical significance. Notably, the NEET rate emerges as the strongest inhibitor of immigration across the EU-27, having a substantial negative impact in the low-inflow country model. Moreover, the old age dependency ratio behaves like a "push" factor, while GDP per capita growth positively shapes migration dynamics. These findings suggest that EU migration policies should address the asymmetrical influence of labour cost on intra-EU migration through targeted interventions.
Contents
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Regional inequalities and human capital adaptability in Romania
Income inequality: The Resource Distribution Index (RDI)
Testing the weak form efficiency of green financial markets: A comparative study between developed and developing green financial markets
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A dynamic panel data analysis of the asymmetric impact of labour cost on intra-EU migration
Determinants of CO2 emissions in ASEAN-5: The role of human development, renewable energy, and economic growth
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Analysing the relationship between tourist flows and socio-economic development. A comparative case study: Romania vs. PIGS countries