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GTAP Resource #3358

"Cyprus - UK Migration Corridor: Economic Implications of Remittances"
by Sonmez, Yontem, Scott McDonald and Karen Thierfelder


Abstract
Cypriot labour migration to Britain started in the late 1950s with the active recruitment of labour by the British government, and was spurred on by the conflict between Turkish and Greek speaking communities in Cyprus. After the island gained its independence from Britain, Cypriots were given the option to choose either a Republic of Cyprus passport or a British passport due to the colonial ties with Britain (Mehmet Ali, 2001), making it relatively easy for them to migrate and work in Britain. The 1962/68 Commonwealth immigration legislation, inter-communal conflicts of 1963 and 1967/68 as well as the 1974 Turkish military intervention all led to mass emigration of Cypriots to Britain.
According to GMig2 database, 43% of unskilled and 42% of the skilled Cypriot migrant workers are resident in the UK. Thus, it is not surprising that 49% of remittances sent to Cyprus are by Cypriot migrant workers in Britain
Following the Eastern enlargement,no limitations were imposed on the migration of Cypriots to the UK thus encouraging further Cypriot emigration.
This paper reports an analysis of the economy wide effects of changes in both labour migration from Cyprus to Britain and labour remittances to Cyprus by migrant workers. Migrations decisions are endogenised through labour supply functions that respond to changes in the relative wages in EU regions. Due to the past migration patterns and volumes of Cypriot workers, the analyses focuses on labour migration to the UK and the economic implications for Cyprus and the UK.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
By/In:
Date: 2010
Version: 1
Created: Sonmez, Y. (4/15/2010)
Updated: Batta, G. (5/10/2010)
Visits: 1,431
- Labor market issues
- European Union


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