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Immigration, Trade and Austrian Unemployment

  • Zweimuller, Joseph
  • Winter-Ebmer, Rudolf

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.

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Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt8cp8c6hf.

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Date of creation: 01 Dec 1995
Date of revision:
Handle: RePEc:cdl:indrel:qt8cp8c6hf
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  1. 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.
  2. Noel Gaston & Daniel Trefler, 1994. "The Role of International Trade and Trade Policy in the Labour Markets of Canada and the United States," The World Economy, Wiley Blackwell, vol. 17(1), pages 45-62, 01.
  3. 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.
  4. 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.
  5. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, December.
  6. 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.
  7. 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.
  8. Gene M. Grossman, 1984. "Imports as a Cause of Injury: The Case of the U.S. Steel Industry," NBER Working Papers 1494, National Bureau of Economic Research, Inc.
  9. Douglas L. Kruse, 1988. "International trade and the labor market experience of displaced workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(3), pages 402-417, April.
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