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International Labor Market Competition and Spousal Labor Supply Responses

Pål Schøne () and Marte Strøm ()

No 12857, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study how the 2004 EU enlargement to Eastern European countries has affected employment, earnings and the sharing of home production among workers employed in the Building and Construction industry, and their wives. We use license requirements to divide workers into two groups who are more and less exposed to labor market competition. We find that non-licensed workers experience a fall in labor earnings relative to licensed workers after the EU enlargement. Increased wife's labor supply and earnings compensate almost 40 percent of the loss. We do not find a similar change in the division of labor in home production.

Keywords: immigration; female employment; division of labor; parental leave (search for similar items in EconPapers)
JEL-codes: J21 J22 J61 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2019-12
New Economics Papers: this item is included in nep-eur and nep-mig
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