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Labor Supply Shocks and the Beveridge Curve. Empirical Evidence from EU Enlargement

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  • Stefan Schiman-Vukan

Abstract

Labor supply shocks can have substantial effects on the Beveridge Curve. Structural VARs with sign restrictions show that the shocks associated with the free movement of workers from Eastern Europe have temporarily increased unemployment in Austria, a major destination country, by 25 percent and job vacancies by 40 percent. The 2 percent increase in total employment was accompanied by a temporary decline in the employment of domestic workers. The greatest impact is seen in regions bordering on the home countries of the migrant workers. Beyond these findings the paper addresses empirical regularities of labor supply shocks that are at odds with theoretical predictions.

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  • Stefan Schiman-Vukan, 2020. "Labor Supply Shocks and the Beveridge Curve. Empirical Evidence from EU Enlargement," WIFO Working Papers 606, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2020:i:606
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    Cited by:

    1. Michael Christl, 2020. "A Beveridge curve decomposition for Austria: did the liberalisation of the Austrian labour market shift the Beveridge curve?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-15, December.
    2. Maffei-Faccioli, Nicolò & Vella, Eugenia, 2021. "Does immigration grow the pie? Asymmetric evidence from Germany," European Economic Review, Elsevier, vol. 138(C).
    3. Foroni, Claudia & Furlanetto, Francesco, 2022. "Explaining Deviations from Okun's Law," CEPR Discussion Papers 17369, C.E.P.R. Discussion Papers.
    4. Oliver Picek, 2018. "Kann nationale Konjunkturpolitik noch Beschäftigung schaffen?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 180, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    5. Fanny Dellinger, 2021. "Housing Support Policies and Refugees' Labor Market Integration in Austria," Working Papers 2021-32, Faculty of Economics and Statistics, Universität Innsbruck.

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    More about this item

    Keywords

    labour supply shocks; Beveridge curve; job-related migration; sign restrictions; structural VAR KP_Berichte_Analysen;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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