2.

To what extent do open borders to EU countries solve the problem of unemployment in Poland

With the enlargement of the European Union in 2004 ten new countries joined, including
Poland. Poland has average gross monthly wage levels far below the EU average and the
labour market in Poland is characterised by a high rate of unemployment. As free movement
of persons is one of the fundamental rights guaranteed to EU citizens. A majority of the EU
governments feared a large flow, not only consisting of permanent migration, but also
migrants looking for temporary or seasonal work. This because a large difference in
expected income and a high degree of unemployment gives a large incentive for individuals
to migrate.

Migration can be seen as a cure for the high unemployment rate of Poland since it can
relieve the pressure on the local labour market and may prevent the unemployed from losing
their skills. The possibility for unemployed Polish citizens to work abroad enlarges their job
opportunities and can decrease the unemployment rate. What is more, a large share of the
migrants tend to send a significant part of their income back home. These remittances not
only increase the living standards of the family members back home, but it can stimulate
investment and consumption in Poland. Although unemployed are rather reluctant to
migrate, the increase of migration of employed people will create job openings for
unemployed people on the local labour market.
On the other hand, since young and qualified workers have a higher probability of migrating,
an increase in labour migration in Poland will generate a significant outflow of young and
qualified workers. This could lead to the so called brain drain .which is a loss in human
capital due to the migration.
However, migrants can return to their home country with upgraded skills, a so called brain
gain, what may offset the initial loss caused by the brain drain. Whether the brain gain or
brain drain effect dominates depends on the length of stay abroad and whether the
migrants undertake work abroad that is well-suited to the level or area of their education.
Since only a small part of the migrants have the intention to settle down permanently
abroad, the brain gain effect could dominate.
To what extent open borders to EU countries solves the problem of unemployment in
Poland depends on whether labour migration is primarily temporary or permanent.
An increase in migration can relieve the pressure on the local labour market and reduce the
high rate of unemployment. Although this is a positive development to reduce the
unemployment rate, an increase in the migration flow can lead to an outflow of young and
qualified workers, causing serious deficits in skilled employees in specialist areas.
To conclude, since the increase in migration consists primarily of people who have
the intention to stay temporary abroad, the increase in migration may be beneficial to the
Polish economy. Returning migrants can stimulate the economic growth if they upgraded
their skills while working abroad.