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The Impact of Economic Integration on Employment - An Assessment in the Context of EU-Enlargement

Author

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  • Fertig, Michael
Abstract
This paper is motivated by the idea that the enlargement of the European Union is only one part of an overall process,known as economic integration, which characterizes the involvement of European economies into the global division of labor.Therefore,the paper aims at providing a quantitative and qualitative assessment of the impact of economic integration on employment and labor market dynamics in current EU-member and candidate countries. The ultimate aim of this analysis is the provision of forecasts for future labor market developments in the context of EU-enlargement.To this end,we in- vestigate this nexus not only on an economy-wide level,but analyze whether the impact of integration varies for different sectors (automotive and financial services)of the economy.The estimation results suggest that future integra- tion processes lead to an increase of economy-wide employment in the acces- sion countries and a small,if any,rise in this outcome variable in the current EU-countries.Moreover,it could be expected that unemployment rates in the accession countries will decline somewhat,whereas those of the current EU-member states will probably experience an increase.Finally,it is very likely that the structure of employment will shift further towards a higher share of service sector employment.

Suggested Citation

  • Fertig, Michael, 2003. "The Impact of Economic Integration on Employment - An Assessment in the Context of EU-Enlargement," RWI Discussion Papers 7, RWI - Leibniz-Institut für Wirtschaftsforschung.
    • Handle: RePEc:zbw:rwidps:7
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 373-395, March.
    2. repec:bla:jcmkts:v:48:y:2010:i::p:373-395 is not listed on IDEAS
    3. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 373-395, March.
    4. Michela Martinoia, 2011. "European Integration, Labour Market Dynamics and Migration Flows," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 97-127, June.
    5. Margarita Atanassova, 2018. "Employment in Bulgaria as Part of European Labor Market – Trends and Institutional Challenges," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 21-28.
    6. Mai, Nhat Chi, 2018. "Three Essays On Financial Integration And Trade Liberalization," OSF Preprints hfrdq, Center for Open Science.
    7. Dimitris Kallioras & George Petrakos & Georgios Fotopoulos, 2005. "Economic integration, regional structural change and cohesion in the EU new member-states," ERSA conference papers ersa05p383, European Regional Science Association.

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    More about this item

    Keywords

    Factor Analysis; Panel Data; Sectoral Case Studies;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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