Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76464
Authors: 
Büttner, Thiess
Rincke, Johannes
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper 1179
Abstract: 
The paper argues that economic integration causes problems for the labor market of high-wage countries due to cross-border labor mobility and the accompanying increase in labor supply. Empirical evidence is provided from an analysis of regional labor market effects of German re-unification. In the aftermath of the re-unification shock, despite some gain in employment, border regions situated on the former German-German border are found to have experienced a fall in the relative wage position and an increase in unemployment relative to other West-German regions. As this points to adverse labor supply effects for resident workers due to cross-border labor mobility, this result is bad news for EU regions situated on the border with the Accession countries in Central and Eastern Europe.
Subjects: 
economic integration
border regions
EU enlargement
German re-unification
differences in differences estimation
JEL: 
F15
J61
R23
Document Type: 
Working Paper

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