How Immigration Grease is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets

31 Pages Posted: 23 Apr 2018

See all articles by Martin Guzi

Martin Guzi

Masaryk University; Central European Labour Studies Institute (CELSI); IZA Institute of Labor Economics

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Lucia Mýtna Kureková

IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2018

Abstract

Theoretical arguments and previous country‐level evidence indicate that immigrants are more fluid than natives in responding to changing skill shortages across countries, occupation groups and industries. The diversity across EU member states enables us to test this hypothesis across various institutional, economic and policy contexts. Drawing on the EU LFS and EU SILC datasets, we study the relationship between residual wage premia as a measure of skill shortages in different occupation‐industry‐country cells and the shares of immigrants and natives working in these cells. We find that immigrants’ responsiveness to skill shortages exceeds that of natives in the EU15, in particular in member states with low GDP, higher levels of immigration from outside EU, and more open immigration and integration policies; but also those with barriers to citizenship acquisition or family reunification. While higher welfare spending seems to exert a lock‐in effect, a comparison across different types of welfare states indicates that institutional complementarities alleviate such effect.

Suggested Citation

Guzi, Martin and Kahanec, Martin and Kureková, Lucia Mýtna, How Immigration Grease is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets (May 2018). Kyklos, Vol. 71, Issue 2, pp. 213-243, 2018. Available at SSRN: https://ssrn.com/abstract=3166348 or http://dx.doi.org/10.1111/kykl.12168

Martin Guzi (Contact Author)

Masaryk University ( email )

Lipova 41a
Brno, 60200
Czech Republic
+420549496766 (Phone)

HOME PAGE: http://www.muni.cz/econ/people/233611

Central European Labour Studies Institute (CELSI)

Zvolenská 29
Bratislava, 82109
Slovakia

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://legacy.iza.org/en/webcontent/personnel/photos/index_html?key=5347

Martin Kahanec

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Central European University ( email )

Nador utca 9
Budapest, H-1051
Hungary

Central European Labour Studies Institute ( email )

Zvolenská 29
Bratislava, 82109
Slovakia

HOME PAGE: http://www.celsi.sk

Lucia Mýtna Kureková

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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