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Immigration, Trade, and Austrian Unemployment

Author

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  • Winter-Ebmer, Rudolf
  • Zweimüller, Josef

Abstract

In this paper we look at the effects of immigration and trade with Eastern Europe on unemployment in Austria. Using individual data over the period 1989-92 of male blue-collar workers employed in the Austrian manufacturing sector, we decompose possible detrimental impacts in unemployment entry effects and unemployment duration effects. We find that unemployment entry does not seem to be strongly affected 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 length of unemployment spells as a result of increased immigration. Increased trade with Central and East European Countries (CEECs) seems 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

  • Winter-Ebmer, Rudolf & Zweimüller, Josef, 1996. "Immigration, Trade, and Austrian Unemployment," CEPR Discussion Papers 1346, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1346
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    Cited by:

    1. 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.
    2. Joshua D. Angrist & Adriana D. Kugler, 2001. "Protective or counter-productive? Labor market institutions and the effect of immigration on EU natives," Economics Working Papers 587, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute of Labor Economics (IZA).
    4. 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.
    5. Julia Bock-Schappelwein & Peter Huber & Klaus Nowotny & Gerhard Streicher, 2009. "Auswirkungen des Grenzgängerabkommens und des Praktikantenabkommens auf den burgenländischen Arbeitsmarkt," WIFO Studies, WIFO, number 38244, June.
    6. 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.
    7. 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, June.
    8. Amin, Mohammad & Mattoo, Aaditya, 2006. "Can guest worker schemes reduce illegal migration ?," Policy Research Working Paper Series 3828, The World Bank.
    9. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank.
    10. repec:wsr:ecbook:2010:i:ii-008 is not listed on IDEAS
    11. Peri, Giovanni, 2005. "Skills and Talent of Immigrants: A Comparison between the European Union and the United States," Institute of European Studies, Working Paper Series qt78t8m1n7, Institute of European Studies, UC Berkeley.
    12. Vincent Fromentin, 2012. "Migration and unemployment duration in OECD countries: A dynamic panel analysis," Economics Bulletin, AccessEcon, vol. 32(2), pages 1113-1124.

    More about this item

    Keywords

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    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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