High unemployment and fiscal austerity during the Great Recession have led to significant migration outfl ows in those European countries that suffered a deep deterioration of their economy, Greece being the most obvious case. This paper introduces endogenous migration in a small open economy...

This paper studies the role of emigration in a deep recession when the government implements fiscal consolidation. We build a small open economy New Keynesian model with matching frictions and emigration of the labour force. Our simulations for the Greek Depression show that fiscal austerity...

La elevada tasa de paro y la austeridad fiscal durante la Gran Recesión han provocado importantes movimientos migratorios procedentes de los países europeos que sufrieron un profundo deterioro de su economía, siendo Grecia el caso más obvio. En este trabajo se introduce una decisión...