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Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market

Author

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  • Hofer, Helmut

    (Department of Economics and Finance, Institute for Advanced Studies)

  • Huber, Peter

    (Austrian Institute of Economic Research (WIFO))

Abstract

This study analyses the effect of trade and migration on wages and labour market mobility. We estimate wage growth equations and a multinomial logit mobility equation on an individual data set for 1991 to 1994. We find substantial differences in the reactions of white and blue-collar workers wages and mobility to trade and migration. In Austria exports have a positive and imports a negative impact on wage growth only for blue-collar workers. Migrants also reduce only blue-collar workers wage growth. Our results indicate that higher imports and an inflow of migrants reduce sectoral mobility of all types of workers. The risk of being out of work by contrast is increased by migration and imports for only blue-collar workers, but reduced by exports for all types of workers. In general, our results suggest enlargement of the EU would have only small effects on the Austrian labour market.

Suggested Citation

  • Hofer, Helmut & Huber, Peter, 2001. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Economics Series 97, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:97
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    File URL: https://irihs.ihs.ac.at/id/eprint/1328
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    Cited by:

    1. Peter Huber & Helmut Hofer, 2001. "Teilprojekt 9: Auswirkungen der EU-Erweiterung auf den österreichischen Arbeitsmarkt," WIFO Studies, WIFO, number 19839.
    2. Özlem Onaran, 2008. "The Effects of Globalization on Wages, Employment, and Wage Share in Austria," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 34(3), pages 337-360.
    3. Thomas Horvath, 2012. "Immigration and the Distribution of Wages in Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 55-69, March.
    4. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, May.
    5. Isil Erol & Umut Unal, 2021. "Employment Effects of Immigration to Germany in the Period of Migration Policy Liberalization, 2005–2018," MAGKS Papers on Economics 202104, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Julia Bock-Schappelwein & Peter Huber, 2015. "Auswirkungen einer Erleichterung des Arbeitsmarktzuganges für Asylsuchende in Österreich," WIFO Studies, WIFO, number 59410.
    7. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, February.
    8. Simonetta LONGHI & Peter NIJKAMP & Jacques POOT, 2008. "Meta-Analysis Of Empirical Evidence On The Labour Market Impacts Of Immigration," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 27, pages 161-191.
    9. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta‐Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, July.
    10. Éva Polgár & Julia Wörz, 2010. "No risk and some fun? Trade and wages in the enlarged European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(2), pages 127-163, May.
    11. Eva Katalin Polgar & Julia Woerz, 2011. "Trade With Central and Eastern Europe: Is It Really a Threat to Wages in the West?," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 1-31, March.
    12. Onaran, Özlem, 2008. "The effect of import penetration on labor market outcomes in Austrian manufacturing industry," Department of Economics Working Paper Series 119, WU Vienna University of Economics and Business.
    13. Aretz, Bodo & Busl, Claudia & Gürtzgen, Nicole & Hogrefe, Jan & Kappler, Marcus & Steffes, Susanne & Westerheide, Peter, 2009. "Endbericht zum Forschungsauftrag fe 13/08: "Ursachenanalyse der Verschiebung in der funktionalen Einkommensverteilung in Deutschland" (Aktenzeichen I A 3 - Vw 3170/08/10035)," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110510.
    14. Peter Huber, 2001. "Regionale Arbeitsmarktwirkungen der Ostintegration," WIFO Monatsberichte (monthly reports), WIFO, vol. 74(11), pages 667-676, November.
    15. Tapio Palokangas, 2008. "Self-Interested Governments, Unionization, and Legal and Illegal Immigration," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(1), pages 007-020, March.
    16. Peter Huber & Stefan Ederer, 2011. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO II: Regionale und gesamtwirtschaftliche Entwicklu," WIFO Studies, WIFO, number 42874.
    17. Egger, Peter & Pfaffermayr, Michael & Weber, Andrea, 2003. "Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level," IZA Discussion Papers 921, Institute of Labor Economics (IZA).
    18. Peter Huber, 2009. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO I: Wirtschaftliche Entwicklung in der CENTROPE-Re," WIFO Studies, WIFO, number 37425.
    19. Isil Erol & Umut Unal, 2022. "Employment effects of immigration to Germany in the period of migration policy liberalization, 2005–2018," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 531-565, September.
    20. repec:onb:oenbwp:y:2009:i:1:b:1 is not listed on IDEAS
    21. Özlem Onaran, 2007. "The effects of globalization on income distribution," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 100, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    22. Peter Huber & Georg Böhs, 2012. "Auswirkungen der Liberalisierung des österreichischen Arbeitsmarktes für die Arbeitskräfte aus den neuen EU-Ländern auf die Regionen Österreichs," WIFO Studies, WIFO, number 59416.
    23. Peter Huber & Yvonne Wolfmayr, 2000. "Außenhandel und Löhne. Ein Literaturüberblick," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(3), pages 197-210, March.
    24. Long Qian & Lixian Liu & Hongbo Liu & Xinjie Shi, 2024. "How does Migration Impact Individuals’ Public Safety Perceptions? Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(2), pages 503-524, September.
    25. Michael Pfaffermayr & Peter Egger & Andrea Weber, 2007. "Sectoral adjustment of employment to shifts in outsourcing and trade: evidence from a dynamic fixed effects multinomial logit model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 559-580.

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    More about this item

    Keywords

    Wages; Migration; Trade;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F15 - International Economics - - Trade - - - Economic Integration

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