Our work focuses on the labour market responses to trade integrations concerning NMS-5 in the period of the dynamic integration with EU-15 markets (1995-2005). We draw on sector level statistics, concerning manufacturing and some services, and explore possible complementarity/substitution relationship between NMS-5 domestic labour and foreign workers from the integrating EU. To this aim we estimate an empirical model of conditional sector labour demand, which takes into account not only domestic input prices but also foreign wage conditions, weighted by the magnitude of bilateral trade flows between single NMS-5 and their partner countries. Overall estimates do not prove a significant response of NMS-5 based labour to wage conditions in their partner countries. However, the typology of sectors taken into consideration results to be crucial: specific results confirm that possible competition between NMS-5 and EU-15 workers may consider labour force employed in low skill intensive manufacturing sectors.

EU Enlargement and Labour Demand in the New Member States

LO TURCO, Alessia;
2010

Abstract

Our work focuses on the labour market responses to trade integrations concerning NMS-5 in the period of the dynamic integration with EU-15 markets (1995-2005). We draw on sector level statistics, concerning manufacturing and some services, and explore possible complementarity/substitution relationship between NMS-5 domestic labour and foreign workers from the integrating EU. To this aim we estimate an empirical model of conditional sector labour demand, which takes into account not only domestic input prices but also foreign wage conditions, weighted by the magnitude of bilateral trade flows between single NMS-5 and their partner countries. Overall estimates do not prove a significant response of NMS-5 based labour to wage conditions in their partner countries. However, the typology of sectors taken into consideration results to be crucial: specific results confirm that possible competition between NMS-5 and EU-15 workers may consider labour force employed in low skill intensive manufacturing sectors.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11566/36960
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