Labor Market Effects of Economic Integration: The Impact of Re-Unification in German Border Regions

Buettner Thiess and Rincke Johannes
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Buettner Thiess: Ifo Institute,Munich, Germany
Rincke Johannes: Ifo Institute,Munich, Germany
Authors registered in the RePEc Author Service: Thiess Büttner

German Economic Review, 2007, vol. 8, issue 4, 536-560

Abstract: This paper exploits the significant reduction in impediments to labor mobility in the process of German re-unification in order to identify labor supply shocks in the West German labor market. The focus is on the quasi-experiment of the border removal in the regions situated at the German-German border that faced a massive increase of cross-border labor supply. The results indicate that despite a gain in employment, the border removal was accompanied by a decline in wages and an increase in unemployment relative to other West German regions.

Keywords: Economic integration; border regions; EU enlargement; German re-unification; difference-in-differences estimation (search for similar items in EconPapers)
Date: 2007
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Related works:
Journal Article: Labor Market Effects of Economic Integration: The Impact of Re‐Unification in German Border Regions (2007)
Working Paper: Labor Market Effects of Economic Integration - The Impact of Re-Unification in German Border Regions (2004)
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DOI: 10.1111/j.1468-0475.2007.00417.x

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