Arbeitspapier

How does economic integration influence employment and wages in border regions? The case of the EU-enlargement 2004 and Germany's Eastern border

This paper considers the (short run) employment and wage effects of the 2004 EUenlargement on firms located close to Germany's Eastern border. We use a 50% sample of Germans plants and apply difference-in-differences-estimators combined with a matching approach. We evaluate changes in total employment, the employment shares of low-skilled and Eastern European workers and the wages for low-skilled, skilled and high-skilled workers in various sectors. Our results suggest negative (short-run) effects of the EU-enlargement on employment in construction and the business services sector, where we also find negative wage effects. Wages and employment in manufacturing, wholesale and retail trade, hotels and restaurants and social and personal service activities seem to have been relatively less affected.

Language
Englisch

Bibliographic citation
Series: Working Paper Series in Economics ; No. 142

Classification
Wirtschaft
Economic Integration
Industry Studies: Services: General
Subject
EU-enlargement
economic integration
employment
wages

Event
Geistige Schöpfung
(who)
Braakmann, Nils
Vogel, Alexander
Event
Veröffentlichung
(who)
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
(where)
Lüneburg
(when)
2009

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Braakmann, Nils
  • Vogel, Alexander
  • Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre

Time of origin

  • 2009

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