IDEAS home Printed from https://ideas.repec.org/p/has/discpr/2514.html

The labor market effects of worker outflow: Evidence from Hungary

Author

Listed:
  • Attila Lindner

    (University College London; ELTE Centre for Economic and Regional Studies; IFS; IZA)

  • Balázs Reizer

    (ELTE Centre for Economic and Regional Studies; Corvinus University of Budapest)

  • Andrea Weber

    (CEU; CEPR; RFBerlin)

Abstract

We investigate how a large-scale outflow of workers affect the reaming workforce. We use Hungarian administrative social security data on the opening of the Austrian labor market to Hungarian workers as a natural experiment. We find that the opening of the Austrian border increased wages by 1 percent and decreased employment by 5 percent in the close neighborhood of the Hungarian side of the border. We also show that the outflow of workers slightly decreased the quality of the remaining workforce in Hungary. Furthermore, we show that Austrian labor demand shocks have a positive impact on Hungarian wages as the increase of vacancies in Austria increases the wages on the Hungarian side of the border.

Suggested Citation

  • Attila Lindner & Balázs Reizer & Andrea Weber, 2025. "The labor market effects of worker outflow: Evidence from Hungary," KRTK-KTI WORKING PAPERS 2514, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:2514
    as

    Download full text from publisher

    File URL: https://kti.krtk.hu/wp-content/uploads/2025/09/KRTKKTIWP202514.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:has:discpr:2514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nora Horvath The email address of this maintainer does not seem to be valid anymore. Please ask Nora Horvath to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/iehashu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.