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

  • Helmut Hofer

    ()

  • Peter Huber

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://hdl.handle.net/10.1023/A:1024165114300
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Article provided by Springer in its journal Empirica.

Volume (Year): 30 (2003)
Issue (Month): 2 (June)
Pages: 107-125

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Handle: RePEc:kap:empiri:v:30:y:2003:i:2:p:107-125
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  1. Haskel, Jonathan E, 2000. "Trade and Labor Approaches to Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 397-408, August.
  2. Helmut Hofer & Karl Pichelmann & Andreas-Ulrich Schuh, 2001. "Price and quantity adjustments in the Austrian labour market," Applied Economics, Taylor & Francis Journals, vol. 33(5), pages 581-592.
  3. 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.
  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. 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.
  6. Krugman, Paul R., 2000. "Technology, trade and factor prices," Journal of International Economics, Elsevier, vol. 50(1), pages 51-71, February.
  7. Edin, Per-Anders & Fredriksson, Peter & Lundborg, Per, 2000. "Trade, Earnings, and Mobility - Swedish Evidence," Working Paper Series 163, Trade Union Institute for Economic Research.
  8. 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.
  9. 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.
  10. William R. Cline, 1997. "Trade and Income Distribution," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 58, March.
  11. Winter-Ebmer, Rudolf & Zweimüller, Josef, 1994. "Do Immigrants Displace Native Workers? The Austrian Experience," CEPR Discussion Papers 991, C.E.P.R. Discussion Papers.
  12. 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.
  13. 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).
  14. 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.
  15. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  16. 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.
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