The demand for skills and labour cost in partner countries. Evidence from the enlarged EU

Aleksandra Parteka; Alessia Lo Turco

The demand for skills and labour cost in partner countries. Evidence from the enlarged EU

Abstract

We analyse the consequences of trade integration in Europe (1995-2005) detecting how the labour costs in partner countries affect the domestic demand for high- and low-skilled labour in 'Old' (EU-15) and five 'New' EU member states. In general, independently of the skill level of workers, the results suggest complementarity between domestic and foreign labour. However, when we take into account the typology of sectors, the demand for the high skilled in low skill intensive sectors in 'New' EU members is boosted by the increase of the average labour cost in 'Old' EU members. Thus in low skill intensive sectors, the high skilled in 'New' member countries can substitute for employment in EU-15 countries.

Authors (2)

Aleksandra Parteka dr hab. inż.
Alessia Lo Turco

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Category:: Articles
Type:: artykuł w czasopiśmie wyróżnionym w JCR
Published in:: ECONOMICS OF TRANSITION no. 19, pages 611 - 637,
ISSN: 0967-0750
Language:: English
Publication year:: 2011
Bibliographic description:: Parteka A., Lo Turco A.: The demand for skills and labour cost in partner countries. Evidence from the enlarged EU// ECONOMICS OF TRANSITION. -Vol. 19, nr. iss. 3 (2011), s.611-637
Verified by:: Gdańsk University of Technology