Original scientific paper
https://doi.org/10.1080/1331677X.2014.975920
Economic repercussions of opening the border to labour movements between North and South Cyprus
Nuru Giritli
Glenn P. Jenkins
Sevin Ugural
Abstract
Recent policy changes in Cyprus represent the first phase of the integration of the labour markets of North and South Cyprus that could eventually lead to the integration of North Cyprus into the EU. Employment of construction workers from the North by South Cyprus has reduced the supply of workers in North Cyprus, while increasing individual incomes. To study the effects on economic well-being and
wealth allocation in North Cyprus, a computable general equilibrium (CGE) model of the economy is employed. Moves to maintain labour market stability by issuing additional permits to workers entering North Cyprus from Turkey are also studied. This policy has significantly benefited all stakeholders in Cyprus.
Keywords
Cyprus; labour market integration; general equilibrium analysis; labour economics; commuter workers; economic policy strategies
Hrčak ID:
171356
URI
Publication date:
20.12.2014.
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