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EU enlargement and (temporary) migration: Effects on labour market outcomes in Germany

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  • Hammer, Luisa
  • Hertweck, Matthias S.

Abstract

EU Eastern Enlargement elicited a rise in (temporary) labour market oriented immi-gration to Germany starting in May 2011. Taking into account that not all immigrantsstay permanently and that outmigration flows are selective, this paper classifies recent EUimmigrants into 'new arrivals' and 'stayers' drawing on administrative social securitydata (2005-2017). This novel strategy allows us to separately identify their potentiallyopposing short- and medium-run effects on labour market outcomes in Germany. We finda transitory negative wage effect among German nationals, particularly at the bottom ofthe wage distribution; and a permanent positive effect on full-time employment.

Suggested Citation

  • Hammer, Luisa & Hertweck, Matthias S., 2022. "EU enlargement and (temporary) migration: Effects on labour market outcomes in Germany," Discussion Papers 02/2022, Deutsche Bundesbank.
    • Handle: RePEc:zbw:bubdps:022022
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    1. Hannah Illing, 2023. "Crossing Borders: Labor Market Effects of European Integration," ECONtribute Discussion Papers Series 221, University of Bonn and University of Cologne, Germany.
    2. Illing, Hannah, 2023. "Crossing Borders: Labor Market Effects of European Integration," IZA Discussion Papers 15930, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    EU Eastern Enlargement; immigration; wages; employment; Germany;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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