Labour mobility and labour market convergence in Cyprus

Abstract:

This essay is an empirical study of migration in a small, dynamic economy, North Cyprus. Even though it is a small state in a divided country, North Cyprus is rather unique, being both an importer and exporter of labor. It attracts a large number of workers from the Turkish mainland, and at the same time it exports labor to South Cyprus. The study consists of three main parts. First, there is an analytical discussion of migration using the standard rational migration theory, which assumes that migrants carefully weigh the economic benefits and costs of relocation prior to moving from origin to destination labor market. In the second part, findings from two special survey results are examined, the first one relating to Turkish Cypriot commuter workers who travel daily from North Cyprus for employment in South Cyprus, and a parallel survey of guest workers from Turkey working in North Cyprus. The third part of the paper highlights the conclusions and policy implications of the findings.