Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278397 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
ECONtribute Discussion Paper No. 221
Publisher: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Abstract: 
This paper studies the labor market effects of out- and in-migration in the context of cross-border commuting. It investigates an EU policy reform that granted Czech citizens full access to the German labor market, resulting in a Czech commuter outflow across the border to Germany. Exploiting the fact that the reform specifically impacted the Czech and German border regions, I use a matched difference-in-differences design to estimate its effects on local labor markets in both countries. Using a novel dataset on Czech regions, I show that municipalities in the Czech border region experienced a decrease in unemployment rates due to the worker outflow, and a corresponding increase in vacancies. For German border municipalities, I find evidence for slower employment growth (long-term) and slower wage growth (short-term), but no displacement effects for incumbent native workers.
Subjects: 
Out-Migration
In-Migration
Local Labor Markets
JEL: 
J61
J15
R23
Document Type: 
Working Paper

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