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Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market

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Author Info
Hofer, Helmut (Department of Economics and Finance, Institute for Advanced Studies)
Huber, Peter (Austrian Institute of Economic Research (WIFO))

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Abstract

This study analyses the effect of trade and migration on wages and labour market mobility. We estimate wage growth equations and a multinomial logit mobility equation on an individual data set for 1991 to 1994. We find substantial differences in the reactions of white and blue-collar workers wages and mobility to trade and migration. In Austria exports have a positive and imports a negative impact on wage growth only for blue-collar workers. Migrants also reduce only blue-collar workers wage growth. Our results indicate that higher imports and an inflow of migrants reduce sectoral mobility of all types of workers. The risk of being out of work by contrast is increased by migration and imports for only blue-collar workers, but reduced by exports for all types of workers. In general, our results suggest enlargement of the EU would have only small effects on the Austrian labour market.

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File URL: http://www.ihs.ac.at/publications/eco/es-97.pdf
File Format: application/pdf
File Function: First version, 2001
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Publisher Info
Paper provided by Institute for Advanced Studies in its series Economics Series with number 97.

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Length: 20 pages
Date of creation: Feb 2001
Date of revision:
Handle: RePEc:ihs:ihsesp:97

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Related research
Keywords: Wages Migration Trade

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Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
F31 - International Economics - - International Finance - - - Foreign Exchange
F15 - International Economics - - Trade - - - Economic Integration

References listed on IDEAS
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  1. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 02, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Winter-Ebmer, Rudolf & Zweimüller, Josef, 1994. "Do Immigrants Displace Native Workers? The Austrian Experience," CEPR Discussion Papers 991, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March. [Downloadable!] (restricted)
  4. Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September. [Downloadable!] (restricted)
  5. Keuschnigg, Christian & Kohler, Wilhelm K., 1998. "Eastern Enlargement of the EU: How much is it Worth for Austria?," CEPR Discussion Papers 1786, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Paul Krugman, 1995. "Technology, Trade, and Factor Prices," NBER Working Papers 5355, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Aiginger, Karl & Winter-Ebmer, Rudolf & Zweimüller, Josef, 1995. "East European Trade and the Austrian Labour Market," CEPR Discussion Papers 1168, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Haskel, Jonathan, 2000. "The Trade and Labour Approaches to Wage Inequality," CEPR Discussion Papers 2476, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1996. "Immigration and the Earnings of Young Native Workers," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 473-91, July. [Downloadable!] (restricted)
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  10. Joseph Zweimuller & Rudolf Winter-Ebmer, 1995. "Immigration, Trade and Austrian Unemployment," Institute for Research on Labor and Employment, Working Paper Series 1090, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
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  11. Damien NEVEN. & Charles WYPLOSZ, 1996. "Relative Prices, Trade and Restructuring in European Industry," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9615, Université de Lausanne, Faculté des HEC, DEEP.
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Cited by:
(explanations, 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.)

  1. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Population Studies Centre Discussion Papers dp-47, University of Waikato, Population Studies Centre. [Downloadable!]
    Other versions:
  2. Özlem Onaran, 2008. "The effect of import penetration on labor market outcomes in Austrian manufacturing industry," Department of Economics Working Papers wuwp119, Vienna University of Economics and B.A., Department of Economics. [Downloadable!]
  3. Egger, Peter & Pfaffermayr, Michael & Weber, Andrea, 2003. "Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level," IZA Discussion Papers 921, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Michael Pfaffermayr & Peter Egger & Andrea Weber, 2007. "Sectoral adjustment of employment to shifts in outsourcing and trade: evidence from a dynamic fixed effects multinomial logit model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 559-580. [Downloadable!]
  5. Longhi, Simonetta & Nijkamp, Peter & Poot, Jacques, 2008. "Meta-Analysis of Empirical Evidence on the Labour Market Impacts of Immigration," IZA Discussion Papers 3418, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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