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East-West Trade and Migration: The Austro-German Case

  • Winter-Ebmer, Rudolf


    (University of Linz)

  • Zimmermann, Klaus F.


    (IZA and University of Bonn)

Trade and migration have become more important in recent years for Austria and Germany. The transition in Central and Eastern Europe has played an important role in this development. The derived labor market consequences are not fully clear so far. This paper presents the results of econometric sectoral panel studies for both countries The Austrian findings suggest that immigration exhibits negative effects on native employment and wages, and has no effects on total employment. Imports affect employment negatively and exports have a positive effect on wages. The German results indicate that immigration and trade is not harming employment and wages. Natives seem to be complements to migrants, at least to those from East Europe. Trade does not affect wages at all, and hardly affect employment. Thus one can expect that, while the Austrian labour market might be somewhat negatively affected by the East enlargement of the EU, the German labor market will not.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2.

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Length: 41 pages
Date of creation: Apr 1998
Date of revision:
Publication status: published in: R. Faini / J. de Melo / K. F. Zimmermann (eds.), Migration. The Controversies and the Evidence, Cambridge, 1999, 296-327; see IZA Reprints 18/99
Handle: RePEc:iza:izadps:dp2
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  2. 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.
  3. 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.
  4. Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
  5. 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.
  6. George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
  7. Wilfried Altzinger, 1996. "Beschäftigungseffekte des österreichischen Osthandels," Department of Economics Working Papers wuwp034, Vienna University of Economics and Business, Department of Economics.
  8. Cadot, Olivier & de Melo, Jaime, 1994. "France and the CEECs: Adjusting to Another Enlargement," CEPR Discussion Papers 1049, C.E.P.R. Discussion Papers.
  9. Zimmermann, Klaus F, 1993. "Native Wage Impacts of Foreign Labour: A Random Effects Panel Analysis," CEPR Discussion Papers 851, C.E.P.R. Discussion Papers.
  10. 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.
  11. 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.
  12. John P. Haisken-DeNew & Klaus F. Zimmermann, . "Wage and Mobility Effects of Trade and Migration," Working Papers _001, SELAPO Center for Human Resources.
  13. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
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  15. Pischke, Jörn-Steffen & Velling, Johannes, 1993. "Ausländische Werkvertragsarbeitnehmer am Bau: Bauboom oder Verdrängungswettbewerb?," ZEW Discussion Papers 93-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  16. Borjas, G.J. & Freeman, R.B. & Katz, L.F., 1991. "On The Labor Market Effects Of Immigration And Trade," Harvard Institute of Economic Research Working Papers 1556, Harvard - Institute of Economic Research.
  17. Winkelmann, Rainer & Zimmermann, Klaus F, 1992. "Ageing, Migration and Labour Mobility," CEPR Discussion Papers 706, C.E.P.R. Discussion Papers.
  18. Robert J. LaLonde & Robert H. Topel, 1991. "Labor Market Adjustments to Increased Immigration," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 167-199 National Bureau of Economic Research, Inc.
  19. Edward E. Leamer, 1996. "What's the Use of Factor Contents?," NBER Working Papers 5448, National Bureau of Economic Research, Inc.
  20. Winter-Ebmer, Rudolf & Zweimüller, Josef, 1996. "Immigration, Trade, and Austrian Unemployment," CEPR Discussion Papers 1346, C.E.P.R. Discussion Papers.
  21. 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.
  22. Randall Filer, 1992. "The Effect of Immigrant Arrivals on Migratory Patterns of Native Workers," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 245-270 National Bureau of Economic Research, Inc.
  23. Richard B. Freeman & Lawrence F. Katz, 1991. "Industrial Wage and Employment Determination in an Open Economy," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 235-259 National Bureau of Economic Research, Inc.
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