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Immigration, Trade and Austrian Unemployment

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  • Zweimuller, Joseph
  • Winter-Ebmer, Rudolf

Abstract

In this paper we look at unemployment effects of immigration and trade with Eastern Europe in Austria. Using individual data over the period 1989 to 1992 of male blue-collar workers employed in the Austrian manufacturing sector, we decompose possible detrimental impacts in unemployment entry effects and unemployment duration effects. Unemployment entry does not seem to be strongly effected by the recent increase in the flow of immigrants. This is different from the immigration effect on unemployment duration. Within almost all subgroups there is a significant increase in the lenght of unemployment spells as a result of larger immigration. Increases in trade with Central and Eastern European Countries (CEECs) seem to have increased the risk of unemployment entry, and to a lesser extent also the duration of unemployment. This is different from trade with the rest of the world where export increases have an unemployment reducing effect.

Suggested Citation

  • Zweimuller, Joseph & Winter-Ebmer, Rudolf, 1995. "Immigration, Trade and Austrian Unemployment," Institute for Research on Labor and Employment, Working Paper Series qt8cp8c6hf, Institute of Industrial Relations, UC Berkeley.
  • Handle: RePEc:cdl:indrel:qt8cp8c6hf
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    References listed on IDEAS

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    1. Muhleisen, Martin & Zimmermann, Klaus F., 1994. "A panel analysis of job changes and unemployment," European Economic Review, Elsevier, vol. 38(3-4), pages 793-801, April.
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    5. Grossman, Gene M., 1986. "Imports as a cause of injury: The case of the U.S. steel industry," Journal of International Economics, Elsevier, vol. 20(3-4), pages 201-223, May.
    6. Brown, D.K., 1992. "The Impact of a North American Free Trade Area: Applied General Equilibrium Models," Working Papers 311, Research Seminar in International Economics, University of Michigan.
    7. Robert E. Baldwin, 1995. "The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages," NBER Working Papers 5037, National Bureau of Economic Research, Inc.
    8. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, January.
    9. 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.
    10. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1996. "Immigration and the Earnings of Young Native Workers," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 473-491, July.
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    Citations

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    Cited by:

    1. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank.
    2. Helmut Hofer & Peter Huber, 2003. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(2), pages 107-125, June.
    3. Angrist, Joshua & Kugler, Adriana, 2002. "Protective or Counter-Productive? Labor Market Institutions and the Effect Immigration on EU Natives," IZA Discussion Papers 433, Institute for the Study of Labor (IZA).
    4. 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).
    5. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages 302-331, June.
    6. Peter Huber & Klaus Nowotny & Julia Bock-Schappelwein, 2010. "Qualification Structure, Over- and Under-qualification of the Foreign Born in Austria and the EU," WIFO Studies, WIFO, number 41226.
    7. Joshua Angrist & Adriana Kugler, 2001. "Protective or Counter-Productive? European Labor Market Institutions and the Effect of Immigrants on EU Natives," NBER Working Papers 8660, National Bureau of Economic Research, Inc.
    8. Sari Pekkala Kerr & William R. Kerr, 2011. "Economic Impacts of Immigration: A Survey," Finnish Economic Papers, Finnish Economic Association, vol. 24(1), pages 1-32, Spring.
    9. Vincent Fromentin, 2012. "Migration and unemployment duration in OECD countries: A dynamic panel analysis," Economics Bulletin, AccessEcon, vol. 32(2), pages 1113-1124.
    10. Giovanni Peri, 2005. "Skills and Talent of Immigrants:A Comparison between the European Union and the United States," Working Papers 524, University of California, Davis, Department of Economics.
    11. Amin, Mohammad & Mattoo, Aaditya, 2006. "Can guest worker schemes reduce illegal migration ?," Policy Research Working Paper Series 3828, The World Bank.

    More about this item

    Keywords

    Zweimuller; Winter-Ebmer; immigration; trade; Austrian; umemployment;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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