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The EU enlargement and domestic employment

Abstract

The study focuses on the interactions between EU member states' labor markets (manufacturing and tradable business services) over the period 1995-2005. We use recently released detailed sector level employment statistics, considering the effects of trade integration on the creation of links between labor force in ''Old'' and ''New'' partners in the enlarged EU. Empirical estimations show that the domestic demand for labor in the EU-15 countries is negatively affected by other ''Old'' EU members' average cost of labor, while it is positively affected by the averagecost of labor in ''New'' partners. EU-15 domestic labor then appears as a complement with respect toother ''Old'' EU partners' labor and as a substitute with respect to workers in ''New'' members. Finally, employment inthe latter group of countries is not really affected by wage conditions in partner countries from the EU.

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Category:
Articles
Type:
publikacja w in. zagranicznym czasopiśmie naukowym (tylko język obcy)
Published in:
Economics Bulletin no. 29, pages 2214 - 2229,
ISSN: 1545-2921
Title of issue:
Economics Bulletin. [online] strony 2214 - 2229
Language:
English
Publication year:
2009
Bibliographic description:
Lo Turco A., Parteka A.. The EU enlargement and domestic employment. Economics Bulletin, 2009, Vol. 29, nr. iss. 3 September, s.2214-2229
Verified by:
Gdańsk University of Technology

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