IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9108.html
   My bibliography  Save this paper

How Immigration Grease Is Affected by Economic, Institutional and Policy Contexts: Evidence from EU Labor Markets

Author

Listed:
  • Guzi, Martin

    (Masaryk University)

  • Kahanec, Martin

    (Central European University)

  • Kureková, Lucia Mýtna

    (Slovak Academy of Sciences)

Abstract

Theoretical arguments and previous country-level evidence indicate that immigrants are more fluid than natives in responding to changing labor shortages across countries, skill-groups or industries. The diversity across EU member states enables us to test this hypothesis across various institutional, economic and policy contexts. Drawing on the EU LFS and EU SILC datasets we study the relationship between residual wage premia as a measure of labor shortages in different skill-industry-country cells and the shares of migrants and natives working in these cells. We find that immigrants' responsiveness to labor market shortages exceeds that of natives in the EU15, in particular in member states with higher unemployment rates, higher levels of (recent) immigration, and more open immigration and integration policies; but also those with barriers to citizenship acquisition or family reunification. Whereas higher welfare expenditures seem to exert a lock-in effect, a comparison across different types of welfare states indicates that institutional complementarities neutralize that effect.

Suggested Citation

  • Guzi, Martin & Kahanec, Martin & Kureková, Lucia Mýtna, 2015. "How Immigration Grease Is Affected by Economic, Institutional and Policy Contexts: Evidence from EU Labor Markets," IZA Discussion Papers 9108, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9108
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9108.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Corrado Giulietti & Martin Guzi & Martin Kahanec & Klaus F. Zimmermann, 2013. "Unemployment benefits and immigration: evidence from the EU," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(1), pages 24-38, March.
    2. George J. Borjas, 2021. "Does Immigration Grease the Wheels of the Labor Market?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 14, pages 431-484, World Scientific Publishing Co. Pte. Ltd..
    3. de Palo, Domenico & Faini, Riccardo & Venturini, Alessandra, 2006. "The Social Assimilation of Immigrants," IZA Discussion Papers 2439, Institute of Labor Economics (IZA).
    4. Jo Ritzen & Klaus Zimmermann, 2014. "A vibrant European labor market with full employment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    5. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March.
    6. Glenda Quintini, 2011. "Over-Qualified or Under-Skilled: A Review of Existing Literature," OECD Social, Employment and Migration Working Papers 121, OECD Publishing.
    7. Neugart, Michael & Schömann, Klaus, 2002. "Employment outlooks: Why forecast the labour market and for whom?," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-206, WZB Berlin Social Science Center.
    8. Jianmin Tang & Weimin Wang, 2005. "Product Market Competition, Skill Shortages and Productivity: Evidence from Canadian Manufacturing Firms," Journal of Productivity Analysis, Springer, vol. 23(3), pages 317-339, July.
    9. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237.
    10. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non‐citizens in the EU," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(1/2), pages 97-115, March.
    11. Martin Kahanec & Klaus F. Zimmermann (ed.), 2016. "Labor Migration, EU Enlargement, and the Great Recession," Springer Books, Springer, number 978-3-662-45320-9, December.
    12. Jessica Bennett & Seamus McGuinness, 2009. "Assessing the impact of skill shortages on the productivity performance of high-tech firms in Northern Ireland," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 727-737.
    13. Francesco D'Amuri & Giovanni Peri, 2016. "Immigration, Jobs, And Employment Protection: Evidence From Europe Before And During The Great Recession," World Scientific Book Chapters, in: The Economics of International Migration, chapter 5, pages 153-185, World Scientific Publishing Co. Pte. Ltd..
    14. Dustmann, Christian & Frattini, Tommaso, 2011. "Immigration: The European Experience," IZA Discussion Papers 6261, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krishna Chaitanya Vadlamannati, 2020. "Welfare Chauvinism? Refugee Flows and Electoral Support for Populist‐Right Parties in Industrial Democracies," Social Science Quarterly, Southwestern Social Science Association, vol. 101(4), pages 1600-1626, July.
    2. Guzi, Martin & Kahanec, Martin & Mýtna Kureková, Lucia, 2022. "The Impact of Immigration and Integration Policies On Immigrant-Native Labor Market Hierarchies," GLO Discussion Paper Series 1198, Global Labor Organization (GLO).
    3. Martin Kahanec & Martin Guzi, 2017. "How immigrants helped EU labor markets to adjust during the Great Recession," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(7), pages 996-1015, October.
    4. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    5. Martin Guzi & Martin Kahanec & Magdalena M. Ulceluse, 2021. "Europe's migration experience and its effects on economic inequality," MUNI ECON Working Papers 2021-05, Masaryk University, revised Feb 2023.
    6. Benesch, Christine & Loretz, Simon & Stadelmann, David & Thomas, Tobias, 2019. "Media coverage and immigration worries: Econometric evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 52-67.
    7. Rémi Bazillier & Francesco Magris & Daniel Mirza, 2023. "Labor mobility agreements and exit of migrants: Evidence from Europe," Kyklos, Wiley Blackwell, vol. 76(3), pages 319-350, August.
    8. Kahanec, Martin & Zimmermann, Klaus F., 2016. "Post-Enlargement Migration and the Great Recession in the E(M)U: Lessons and policy implications," MERIT Working Papers 2016-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Martin Guzi & Štěpán Mikula, 2022. "Reforms that keep you at home: The effects of economic transition on migration," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 289-310, April.
    10. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2021. "Excess churn in integrated labor markets," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 865-892, July.
    11. Stelios Roupakias & Spiridoula Dimou, 2021. "Immigration, diversity and institutions," Kyklos, Wiley Blackwell, vol. 74(3), pages 396-416, August.
    12. Manthei, Gerrit, 2020. "The effects of refugee immigration on income inequality in Germany: A case study," FZG Discussion Papers 72, University of Freiburg, Research Center for Generational Contracts (FZG).
    13. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156.
    14. Renate Ortlieb & Julian Winterheller, 2020. "Behind Migrant and Non‐Migrant Worktime Inequality in Europe: Institutional and Cultural Factors Explaining Differences," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 785-815, December.
    15. Ulceluse, Magdalena & Kahanec, Martin, 2019. "The effectiveness of restrictive immigration policies: the case of transitional arrangements," GLO Discussion Paper Series 379, Global Labor Organization (GLO).
    16. Raffaele Guetto, 2018. "Employment Returns to Tertiary Education for Immigrants in Western Europe: Cross-Country Differences Before and After the Economic Crisis," Social Inclusion, Cogitatio Press, vol. 6(3), pages 64-77.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Kahanec & Martin Guzi, 2017. "How immigrants helped EU labor markets to adjust during the Great Recession," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(7), pages 996-1015, October.
    2. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    3. Zaiceva, A. & Zimmermann, K.F., 2016. "Migration and the Demographic Shift," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 119-177, Elsevier.
    4. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
    5. Guzi, Martin & Kahanec, Martin, 2015. "Socioeconomic Cleavages between Workers from New Member States and Host-country Labour Forces in the EU during the Great Recession," MPRA Paper 74978, University Library of Munich, Germany.
    6. Horbach, Jens & Rammer, Christian, 2020. "Labor shortage and innovation," ZEW Discussion Papers 20-009, ZEW - Leibniz Centre for European Economic Research.
    7. Hinte, Holger & Rinne, Ulf & Zimmermann, Klaus F., 2011. "Zuwanderung, Demografie und Arbeitsmarkt: Fakten statt Vorbehalte," IZA Standpunkte 37, Institute of Labor Economics (IZA).
    8. Kahanec, Martin & Zimmermann, Klaus F., 2016. "Post-Enlargement Migration and the Great Recession in the E(M)U: Lessons and policy implications," MERIT Working Papers 2016-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Sandra M. Leitner, 2022. "A skill‐specific dynamic labour supply and labour demand framework: A scenario analysis for the Western Balkan countries to 2030," LABOUR, CEIS, vol. 36(4), pages 471-504, December.
    10. Verdier, Thierry & Zenou, Yves, 2017. "The role of social networks in cultural assimilation," Journal of Urban Economics, Elsevier, vol. 97(C), pages 15-39.
    11. DavidG. Blanchflower & Chris Shadforth, 2009. "Fear, Unemployment and Migration," Economic Journal, Royal Economic Society, vol. 119(535), pages 136-182, February.
    12. repec:diw:diwwpp:dp1090 is not listed on IDEAS
    13. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    14. Amelie F. Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2011. "Ethnicity, job search and labor market reintegration of the unemployed," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(7), pages 753-776, October.
    15. Daniel Rauhut & Birgit Aigner-Walder & Rahel M. Schomaker, 2023. "Economic Theory and Migration," Springer Books, in: The Economics of Immigration Beyond the Cities, chapter 0, pages 21-50, Springer.
    16. Martin Guzi & Štěpán Mikula, 2022. "Reforms that keep you at home: The effects of economic transition on migration," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 289-310, April.
    17. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2021. "Excess churn in integrated labor markets," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 865-892, July.
    18. Werner Eichhorst & Corrado Giulietti & Martin Guzi & Michael J. Kendzia & Paola Monti & Tommaso Frattini & Peter Huber & Klaus Nowotny & Barbara Vandeweghe, 2011. "The Integration of Migrants and its Effects on the Labour Market," WIFO Studies, WIFO, number 42955.
    19. Nik Dawson & Marian-Andrei Rizoiu & Benjamin Johnston & Mary-Anne Williams, 2020. "Predicting Skill Shortages in Labor Markets: A Machine Learning Approach," Papers 2004.01311, arXiv.org, revised Aug 2020.
    20. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Barbara Wanek-Zajic, 2019. "Employment Gaps Between Refugees, Migrants and Natives: Evidence from Austrian Register Based Labour Market Data," wiiw Working Papers 167, The Vienna Institute for International Economic Studies, wiiw.
    21. Aleksynska, Mariya & Algan, Yann, 2010. "Assimilation and Integration of Immigrants in Europe," IZA Discussion Papers 5185, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    institutions; labor supply; skill matching; migration; labor shortage; welfare state; policy;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.