Empirical investigation on labour market interactions in an enlarged Europe
AbstractThis paper proposes an empirical assessment of economic interactions between the labour markets of the integrating EU over the period of time 1995–2005. Drawing on recently made available industry statistics, we provide a sector level study (13 tradable sectors, including manufacturing and services), analysing the contemporary evolution of domestic and trade partners’ employment levels. Given the intensification of trade relations as a result of ongoing integration process, we build a sector-specific measure of economic interdependency, based on information on labour markets’ performance and weighted by the magnitude of intra-EU trade flows (imports). The estimates of a dynamic empirical model confirm the interactions between employment levels in different Member States. Domestic employment in NMS-5 is rather positively affected by the expansion of labour markets in other EU’s trade partners (domestic employment levels in NMS-5 countries improve in parallel to the increase in foreign tradable sectors’ employment). The opposite holds true for EU-15 domestic labour markets that are rather challenged by the expansion of tradable sectors in their EU trade partners.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by National Bank of Poland, Economic Institute in its journal Bank i Kredyt.
Volume (Year): 40 (2009)
Issue (Month): 1 ()
Note: The paper draws on findings of the research on “EU Enlargement, Economic Interdependence and the Labor Markets in ‘Old’ and ‘New’ Member States” realised within Scientific Research Programs of National Relevance PRIN 2007 on “European Union Policies, Economic and Trade Integration Processes and WTO Negotiation” – financial support received from the Italian Ministry of Education, University and Research is gratefully acknowledged. We thank the organisers and the participants of the conference organised by the National Bank of Poland and Bank i Kredyt (“EU Enlargement, Migration, Labor Market and Economic Growth in Europe after Enlargement”, Warsaw, 8-9 December 2008), where the original paper won the Best Paper Award, as well as the participants of PUE-PIEC Workshop (Universita’ Roma Tre, Rome, 28–29 January 2009) for valuable comments and suggestions. All the remaining errors are ours.
Contact details of provider:
Postal: 00-919 Warszawa ul. Świętokrzyska 11/21
Phone: (0-22) 653 10 00
Fax: (0-22) 620 85 18
Web page: http://www.bankikredyt.nbp.pl/menu_en.aspx
More information through EDIRC
EU integration; labour markets; trade;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- F15 - International Economics - - Trade - - - Economic Integration
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert C. Feenstra, 1998.
"Integration of Trade and Disintegration of Production in the Global Economy,"
Journal of Economic Perspectives,
American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
- Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics.
- Falk, Martin & Wolfmayr, Yvonne, 2008. "Services and materials outsourcing to low-wage countries and employment: Empirical evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 38-52, March.
- Maria Paula Fontoura & Nuno Crespo, 2004.
"Integration of CEECs into EU Markets: Structural Change and Convergence,"
Working Papers Department of Economics
2004/15, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Nuno Crespo & Maria Paula Fontoura, 2007. "Integration of CEECs into EU Market: Structural Change and Convergence," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 611-632, 09.
- Michael Landesmann & Hermine Vidovic, 2006. "Employment Developments in Central and Eastern Europe," wiiw Research Reports 332, The Vienna Institute for International Economic Studies, wiiw.
- Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 59-102.
- Gene M. Grossman & Esteban Rossi-Hansberg, 2008.
"Trading Tasks: A Simple Theory of Offshoring,"
American Economic Review,
American Economic Association, vol. 98(5), pages 1978-97, December.
- Andrea Zaghini, 2005.
"Evolution of trade patterns in the new EU member states,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 13(4), pages 629-658, October.
- Andrea Zaghini, 2005. "Evolution of trade patterns in the new EU member states," Temi di discussione (Economic working papers) 568, Bank of Italy, Economic Research and International Relations Area.
- Peter Egger, 2006. "Intermediate goods trade and international wage convergence in Central Europe," Empirica, Springer, vol. 33(4), pages 181-192, September.
- Hartmut Egger & Peter Egger, 2002. "How international outsourcing drives up Eastern European wages," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 83-96, March.
- Luca Benedictis & Lucia Tajoli, 2007.
"Economic integration and similarity in trade structures,"
Springer, vol. 34(2), pages 117-137, April.
- Lucia Tajoli & Lucia De Benedictis, 2006. "Economic Integration and Similarity in Trade Structures," Working Papers 2006.54, Fondazione Eni Enrico Mattei.
- Luca De Benedictis & Lucia Tajoli, 2008. "Similarity in trade structures, integration and catching-up," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 165-182, 04.
- Hartmut Egger & Peter Egger, 2000. "Outsourcing and skill-specific employment in a small economy: Austria and the fall of the Iron Curtain," Economics working papers 2000-24, Department of Economics, Johannes Kepler University Linz, Austria.
- Peter Egger & Michael Pfaffermayr, 2004. "Two Dimensions of Convergence: National and International Wage Adjustment Effects of Cross-border Outsourcing in Europe," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 833-843, November.
- Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
- Ingo Geishecker, 2006. "Does Outsourcing to Central and Eastern Europe Really Threaten Manual Workers' Jobs in Germany?," The World Economy, Wiley Blackwell, vol. 29(5), pages 559-583, 05.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sylwia Roszkowska).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.