EconPapers    
Economics at your fingertips  
 

Labor Supply Shocks and the Beveridge Curve

Stefan Schiman

No 568, WIFO Working Papers from WIFO

Abstract: The accession of twelve Eastern European countries to the European Union between 2004 and 2007 led to an increase of migrant labour supply in some incumbent countries. By means of a structural VAR with sign restrictions I find that job-related immigration triggered a counter-clockwise outward movement of the Beveridge curve in Austria, a country that was particularly affected due to its geographical exposure and a high wage gap to the accession countries. A regional analysis shows that the prevalence of labour supply shocks abates from east to west. In contrast to standard theory but in line with existing empirical evidence, labour supply shocks are not found to be price dampening, but more likely inflationary. From this it follows that they cannot be properly identified without resorting to some restriction of the unemployment rate.

Keywords: labour supply shocks; Beveridge curve; job-related migration; sign restrictions; structural VAR KP_Berichte_Analysen (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig and nep-ure
Date: 2018-07-19
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.wifo.ac.at/wwa/pubid/61199 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2018:i:568

Access Statistics for this paper

More papers in WIFO Working Papers from WIFO Contact information at EDIRC.
Bibliographic data for series maintained by Ilse Schulz ().

 
Page updated 2019-10-20
Handle: RePEc:wfo:wpaper:y:2018:i:568