The Demand for Skills and the Labor Cost in Partner Countries: Evidence from the Enlarged EU

Alessia Lo Turco and Aleksandra Parteka

No 348, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: We analyse the consequences of trade integration in Europe (1995-2005) detecting how the labor costs in partner countries affects the demand for domestic high- and low-skilled labor in the EU-15 and five new member states. In general, independently on the skill level, the results hint at complementarity between domestic and foreign labor. However, the demand for the high skilled in New EU members' low skill intensive sectors is boosted by the increase of the average labor cost in Old EU members, thus hinting for these sectors at the high skilled in New member countries substituting for labor in Old EU.

Keywords: EU integration; labor markets; trade (search for similar items in EconPapers)
JEL-codes: F15 F16 J31 (search for similar items in EconPapers)
Pages: 35
Date: 2010-09
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-int, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The demand for skills and labour costs in partner countries (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:348

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