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How Immigration Grease Is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets

Author

Listed:
  • Martin Guzi
  • Martin Kahanec
  • Lucia Mýtna Kureková

Abstract

Theoretical arguments and previous country†level evidence indicate that immigrants are more fluid than natives in responding to changing skill shortages across countries, occupation groups and industries. The diversity across EU member states enables us to test this hypothesis across various institutional, economic and policy contexts. Drawing on the EU LFS and EU SILC datasets, we study the relationship between residual wage premia as a measure of skill shortages in different occupation†industry†country cells and the shares of immigrants and natives working in these cells. We find that immigrants’ responsiveness to skill shortages exceeds that of natives in the EU15, in particular in member states with low GDP, higher levels of immigration from outside EU, and more open immigration and integration policies; but also those with barriers to citizenship acquisition or family reunification. While higher welfare spending seems to exert a lock†in effect, a comparison across different types of welfare states indicates that institutional complementarities alleviate such effect.

Suggested Citation

  • Martin Guzi & Martin Kahanec & Lucia Mýtna Kureková, 2018. "How Immigration Grease Is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets," Kyklos, Wiley Blackwell, vol. 71(2), pages 213-243, May.
    • Handle: RePEc:bla:kyklos:v:71:y:2018:i:2:p:213-243
    DOI: 10.1111/kykl.12168
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    Cited by:

    1. Stelios Roupakias & Spiridoula Dimou, 2021. "Immigration, diversity and institutions," Kyklos, Wiley Blackwell, vol. 74(3), pages 396-416, August.
    2. Manthei, Gerrit, 2020. "The effects of refugee immigration on income inequality in Germany: A case study," FZG Discussion Papers 72, University of Freiburg, Research Center for Generational Contracts (FZG).
    3. Benesch, Christine & Loretz, Simon & Stadelmann, David & Thomas, Tobias, 2019. "Media coverage and immigration worries: Econometric evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 52-67.
    4. Martin Guzi & Martin Kahanec & Lucia Mýtna Kureková, 2022. "The Impact of Immigration and Integration Policies On Immigrant-Native Labor Market Hierarchies," MUNI ECON Working Papers 2022-12, Masaryk University, revised Feb 2023.
    5. Krishna Chaitanya Vadlamannati, 2020. "Welfare Chauvinism? Refugee Flows and Electoral Support for Populist‐Right Parties in Industrial Democracies," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1600-1626, July.
    6. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    7. Martin Guzi & Martin Kahanec & Magdalena M. Ulceluse, 2021. "Europe's migration experience and its effects on economic inequality," MUNI ECON Working Papers 2021-05, Masaryk University, revised Feb 2023.
    8. Rémi Bazillier & Francesco Magris & Daniel Mirza, 2023. "Labor mobility agreements and exit of migrants: Evidence from Europe," Kyklos, Wiley Blackwell, vol. 76(3), pages 319-350, August.
    9. Martin Guzi & Štěpán Mikula, 2022. "Reforms that keep you at home: The effects of economic transition on migration," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 289-310, April.
    10. Kahanec, Martin & Zimmermann, Klaus F., 2016. "Post-Enlargement Migration and the Great Recession in the E(M)U: Lessons and policy implications," MERIT Working Papers 2016-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Andrén, Daniela & Andrén, Thomas & Kahanec, Martin, 2025. "Immigration, Partnership Dynamics and Welfare Persistence," Working Papers 2025:5, Örebro University, School of Business.
    12. Martin Kahanec & Martin Guzi, 2017. "How immigrants helped EU labor markets to adjust during the Great Recession," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(7), pages 996-1015, October.
    13. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2021. "Excess churn in integrated labor markets," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 865-892, July.
    14. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156.
    15. Ulceluse, Magdalena & Kahanec, Martin, 2019. "The effectiveness of restrictive immigration policies: the case of transitional arrangements," GLO Discussion Paper Series 379, Global Labor Organization (GLO).
    16. Renate Ortlieb & Julian Winterheller, 2020. "Behind Migrant and Non‐Migrant Worktime Inequality in Europe: Institutional and Cultural Factors Explaining Differences," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 785-815, December.
    17. Raffaele Guetto, 2018. "Employment Returns to Tertiary Education for Immigrants in Western Europe: Cross-Country Differences Before and After the Economic Crisis," Social Inclusion, Cogitatio Press, vol. 6(3), pages 64-77.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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