Crossing Borders: Labor Market Effects of European Integration

Hannah Illing ()

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: This paper investigates an EU policy reform that granted Czech citizens full access to the German labor market. Exploiting the fact that the reform specifically impacted the Czech and German border regions, I use a matched difference-in-differences design to estimate local labor markets effects in both countries. I show that the Czech border region experienced a decline in unemployment rates and an increase in vacancies, while local labor markets in Germany remained unaffected. Overall, my findings suggest that the Czech border region faced labor shortages, while local labor markets in Germany were able to fully absorb the migrant inflow.

Keywords: Out-Migration; In-Migration; Local Labor Markets (search for similar items in EconPapers)
JEL-codes: J15 J61 R23 (search for similar items in EconPapers)
Pages: 111
Date: 2023-02, Revised 2025-04
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2023_396v2

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