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Open Borders, Transport Links and Local Labor Markets

Olof Aslund () and Mattias Engdahl ()
Additional contact information
Olof Aslund: IFAU
Mattias Engdahl: Uppsala University

No 9759, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: We study the labor market impact of opening borders to low wage countries. The analysis exploits time and regional variation provided by the 2004 EU enlargement in combination with transport links to Sweden from the new member states. The results suggest an adverse impact on earnings of present workers in the order of 1 percent in areas close to pre-existing ferry lines. The effects are present in most segments of the labor market but tend to be greater in groups with weaker positions. The impact is also clearer in industries which have received more workers from the new member states, and for which across-the-border work is likely to be more common. There is no robust evidence on an impact on employment or wages. At least part of the effects is likely due to channels other than the ones typically considered in the literature.

Keywords: migration policy; immigration; labor market outcomes (search for similar items in EconPapers)
JEL-codes: J15 J31 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-lma, nep-mig, nep-tre and nep-ure
Date: 2016-02
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