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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))

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 Function: First version, 2001
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Bibliographic 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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Keywords: Wages; Migration; Trade;

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References

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  1. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute for the Study of Labor (IZA).
  2. Edin, Per-Anders & Fredriksson, Peter & Lundborg, Per, 2000. "Trade, Earnings, and Mobility - Swedish Evidence," Working Paper Series 2000:24, Uppsala University, Department of Economics.
  3. 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.
  4. Jonathan E. Haskel, 1999. "The Trade and Labour Approaches to Wage Inequality," Working Papers 405, Queen Mary, University of London, School of Economics and Finance.
  5. Haskel, Jonathan E, 2000. "Trade and Labor Approaches to Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 397-408, August.
  6. 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.
  7. 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.
  8. 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.
  9. Krugman, Paul R., 2000. "Technology, trade and factor prices," Journal of International Economics, Elsevier, vol. 50(1), pages 51-71, February.
  10. Winter-Ebmer, Rudolf & Zweimüller, Josef, 1994. "Do Immigrants Displace Native Workers? The Austrian Experience," CEPR Discussion Papers 991, C.E.P.R. Discussion Papers.
  11. Hofer, Helmut & Pichelmann, Karl & Schuh, Andreas-Ulrich, 1998. "Price and Quantity Adjustments in the Austrian Labour Markets," Economics Series 57, Institute for Advanced Studies.
  12. repec:wop:humbsf:1996-65 is not listed on IDEAS
  13. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  14. Keuschnigg, Christian & Kohler, Wilhelm, 2002. "Eastern Enlargement of the EU: How Much Is It Worth for Austria?," Review of International Economics, Wiley Blackwell, vol. 10(2), pages 324-42, May.
  15. André Sapir & Mathias Dewatripont & Khalid Sekkat, 1999. "Trade and jobs in Europe: much ado about nothing?," ULB Institutional Repository 2013/8076, ULB -- Universite Libre de Bruxelles.
  16. Wolfgang HÄRDLE & J. MARRON & L. YANG, 1996. "Discussion," SFB 373 Discussion Papers 1996,65, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  17. William R. Cline, 1997. "Trade and Income Distribution," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 58.
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Citations

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Cited by:
  1. 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).
  2. repec:onb:oenbwp:y:2009:i:1:b:1 is not listed on IDEAS
  3. Gerard Thomas Horvath, 2011. "Immigration and Distribution of Wages in Austria," Economics working papers 2011-11, Department of Economics, Johannes Kepler University Linz, Austria.
  4. Polgár, Éva Katalin & Wörz, Julia, 2010. "Trade with central and eastern Europe: Is it really a threat to wages in the west?," Working Paper Series 1244, European Central Bank.
  5. Éva Polgár & Julia Wörz, 2010. "No risk and some fun? Trade and wages in the enlarged European Union," Empirica, Springer, vol. 37(2), pages 127-163, May.
  6. Tapio Palokangas, 2008. "Self-Interested Governments, Unionization, and Legal and Illegal Immigration," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(1), pages 007-020, March.
  7. Özlem Onaran, 2008. "The Effects of Globalization on Wages, Employment, and Wage Share in Austria," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 34(3), pages 337-360.
  8. Egger, Peter & Pfaffermayr, Michael & Weber, Andrea, 2003. "Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level," Economics Series 145, Institute for Advanced Studies.
  9. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, 05.
  10. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, 07.
  11. Thomas Horvath, 2012. "Immigration and the Distribution of Wages in Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 55-69, March.
  12. 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.
  13. 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, Department of Economics.

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