EU Enlargement, Economic Interdependence and the Labor Markets in 'Old' and 'New' Member States

37 Pages Posted: 4 Feb 2009

See all articles by Alessia Lo Turco

Alessia Lo Turco

Università Politecnica delle Marche - Department of Economics and Social Sciences

Aleksandra Parteka

Gdańsk University of Technology - Faculty of Management and Economics

Date Written: February 3, 2009

Abstract

We propose a study on the interdependence between 'Old' and 'New' member states, focusing on the labor markets of the enlarged EU over the period 1995-2005. Increased accessibility of detailed sector level labor statistics allows us to shed some new light on the interactions between EU-15 and NMS-5 skill structures and employment levels. We consider trade based linkages and interaction mechanisms across 13 sectors. We focus on the relation between domestic high and low skill employment and foreign wage conditions regarding the two categories of workers. There are signs of possible substitution effects if we consider the relations between domestic EU-15 labor and foreign employment. When looking at the skill structure of employment, the competition among workers in EU15 and NMS occurs within skilled labor category.

Keywords: Employment interdependence, labor markets, EU integration, trade

JEL Classification: C33, F15, F16

Suggested Citation

Lo Turco, Alessia and Parteka, Aleksandra, EU Enlargement, Economic Interdependence and the Labor Markets in 'Old' and 'New' Member States (February 3, 2009). Available at SSRN: https://ssrn.com/abstract=1337078 or http://dx.doi.org/10.2139/ssrn.1337078

Alessia Lo Turco (Contact Author)

Università Politecnica delle Marche - Department of Economics and Social Sciences ( email )

Piazzale Martelli 8
Ancona
Italy
+390712207250 (Phone)

Aleksandra Parteka

Gdańsk University of Technology - Faculty of Management and Economics ( email )

Narutowicza 11/12
80-952 Gdansk
Poland

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