Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eme/ijmpps/ijm-08-2017-0205.html
   My bibliography  Save this article

How immigrants helped EU labor markets to adjust during the Great Recession

Author

Listed:
  • Martin Kahanec
  • Martin Guzi
Abstract
Purpose - The economic literature starting with Borjas (2001) suggests that immigrants are more flexible than natives in responding to changing sectoral, occupational and spatial shortages in the labor market. The purpose of this paper is to study the relative responsiveness to labor shortages by immigrants from various origins, skills and tenure in the countryvis-à-visthe natives, and how it varied over the business cycle during the Great Recession. Design/methodology/approach - Using data primarily from the EU Labor Force Survey and the EU Statistics on Income and Living Conditions, the authors calculate a wage-based measure of labor shortages in the first stage while in the second stage the authors use them in a first-differences fixed-effects model as a regressor to explain changes in immigrants’ distribution across sectors, occupations and countriesvis-à-visthe natives. Findings - The authors show that immigrants have responded to changing labor shortages across EU member states, occupations and sectors at least as much and in many cases more flexibly than natives. This effect is especially significant for low-skilled immigrants from the new member states or with the medium number of years since migration, as well as with high-skilled immigrants with relatively few (one to five) or many (11+) years since migration. The relative responsiveness of some immigrant groups declined during the crisis years (those from Europe outside the EU or with 11 or more years since migration), whereas other groups of immigrants became particularly fluid during the Great Recession, such as those from new member states. Research limitations/implications - The results suggest that immigrants may play an important role in labor adjustment during times of asymmetric economic shocks, and support the case for well-designed immigration policy and free movement of workers within the EU. Some limitations include alternative interpretations of the wage premium as our measure of shortage, as well as possible endogeneity of this measure in the model. Originality/value - The results provide new insights into the functioning of the European Single Market and the roles various immigrant groups play for its stabilization through labor adjustment during the times of uneven economic development across sectors, occupations and countries.

Suggested Citation

  • Martin Kahanec & Martin Guzi, 2017. "How immigrants helped EU labor markets to adjust during the Great Recession," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(7), pages 996-1015, October.
    • Handle: RePEc:eme:ijmpps:ijm-08-2017-0205
    DOI: 10.1108/IJM-08-2017-0205
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJM-08-2017-0205/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJM-08-2017-0205/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJM-08-2017-0205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    2. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
    3. Martin Guzi & Martin Kahanec & Lucia Mýtna Kureková, 2018. "How Immigration Grease Is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets," Kyklos, Wiley Blackwell, vol. 71(2), pages 213-243, May.
    4. Martin Kahanec & Klaus F. Zimmermann (ed.), 2016. "Labor Migration, EU Enlargement, and the Great Recession," Springer Books, Springer, number 978-3-662-45320-9, January.
    5. George J. Borjas, 2021. "Does Immigration Grease the Wheels of the Labor Market?," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 14, pages 431-484, World Scientific Publishing Co. Pte. Ltd..
    6. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March.
    7. Alfonso Arpaia & Aron Kiss & Balazs Palvolgyi & Alessandro Turrini, 2016. "Labour mobility and labour market adjustment in the EU," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-21, December.
    8. Martin Kahanec, 2013. "Labor mobility in an enlarged European Union," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 7, pages 137-152, Edward Elgar Publishing.
    9. Martin Kahanec & Anzelika Zaiceva, 2009. "Labor market outcomes of immigrants and non‐citizens in the EU," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(1/2), pages 97-115, March.
    10. Catalina Amuedo-Dorantes & Sara De la Rica, 2010. "Immigrants’ responsiveness to labor market conditions and their impact on regional employment disparities: evidence from Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(4), pages 387-407, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manthei, Gerrit, 2020. "The effects of refugee immigration on income inequality in Germany: A case study," FZG Discussion Papers 72, University of Freiburg, Research Center for Generational Contracts (FZG).
    2. Martin Guzi & Martin Kahanec & Lucia Mýtna Kureková, 2022. "The Impact of Immigration and Integration Policies On Immigrant-Native Labor Market Hierarchies," MUNI ECON Working Papers 2022-12, Masaryk University, revised Feb 2023.
    3. Vassil Kirov & Lucia Kováčová & Martin Guzi & Jan Czarzasty & Dragoș Adăscăliței & Martin Kahanec, 2023. "Preserving Jobs in COVID-19 Times in CEE Countries: Social Partners’ Responses and Actions," Discussion Papers 66, Central European Labour Studies Institute (CELSI).
    4. Julia Jauer & Thomas Liebig & John P. Martin & Patrick A. Puhani, 2019. "Migration as an adjustment mechanism in the crisis? A comparison of Europe and the United States 2006–2016," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 1-22, January.
    5. Martin Kahanec & Martin Guzi, 2023. "Welfare Migration," Discussion Papers 65, Central European Labour Studies Institute (CELSI).
    6. Martin Guzi & Martin Kahanec & Magdalena M. Ulceluse, 2021. "Europe's migration experience and its effects on economic inequality," Discussion Papers 60, Central European Labour Studies Institute (CELSI).
    7. Berger, Johannes & Strohner, Ludwig, 2022. "Can labour mobility reduce imbalances in the euro area?," Research Papers 20, EcoAustria – Institute for Economic Research.
    8. Ritzen, Jo & Kahanec, Martin & Haas, Jasmina, 2017. "EU Mobility," IZA Policy Papers 125, Institute of Labor Economics (IZA).
    9. Martin Guzi & Štěpán Mikula, 2022. "Reforms that keep you at home: The effects of economic transition on migration," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 289-310, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Guzi & Martin Kahanec & Lucia Mýtna Kureková, 2018. "How Immigration Grease Is Affected by Economic, Institutional, and Policy Contexts: Evidence from EU Labor Markets," Kyklos, Wiley Blackwell, vol. 71(2), pages 213-243, May.
    2. Kahanec, Martin & Zimmermann, Klaus F., 2016. "Post-Enlargement Migration and the Great Recession in the E(M)U: Lessons and policy implications," MERIT Working Papers 2016-066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Kahanec, Martin, 2012. "Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute of Labor Economics (IZA).
    4. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156, April.
    5. Julia Jauer & Thomas Liebig & John P. Martin & Patrick A. Puhani, 2019. "Migration as an adjustment mechanism in the crisis? A comparison of Europe and the United States 2006–2016," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 1-22, January.
    6. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2021. "Excess churn in integrated labor markets," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 865-892, July.
    7. Guzi, Martin & Kahanec, Martin, 2015. "Socioeconomic Cleavages between Workers from New Member States and Host-country Labour Forces in the EU during the Great Recession," MPRA Paper 74978, University Library of Munich, Germany.
    8. Martin Kahanec & Anzelika Zaiceva & Klaus F. Zimmermann, 2011. "Ethnic Minorities in the European Union: An Overview," Chapters, in: Martin Kahanec & Klaus F. Zimmermann (ed.), Ethnic Diversity in European Labor Markets, chapter 1, Edward Elgar Publishing.
    9. Maria Balgova & Hannah Illing, 2023. "Job Displacement and Migrant Labor Market Assimilation," ECONtribute Discussion Papers Series 246, University of Bonn and University of Cologne, Germany.
    10. Adriano Paggiaro, 2013. "How do immigrants fare during the downturn? Evidence from matching comparable natives," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(8), pages 229-258.
    11. ., 2012. "Migration impact assessment: a state of the art," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 1, pages 3-62, Edward Elgar Publishing.
    12. Sara de la Rica & Albretch Glitz & Francesc Ortega, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," Working Papers 2013-16, FEDEA.
    13. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    14. Amelie F. Constant & Martin Kahanec & Ulf Rinne & Klaus F. Zimmermann, 2011. "Ethnicity, job search and labor market reintegration of the unemployed," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(7), pages 753-776, October.
    15. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," RF Berlin - CReAM Discussion Paper Series 1402, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    16. Kahanec, Martin & Zimmermann, Klaus F. & Kureková, Lucia Mýtna & Biavaschi, Costanza, 2013. "Labour Migration from EaP Countries to the EU – Assessment of Costs and Benefits and Proposals for Better Labour Market Matching," IZA Research Reports 56, Institute of Labor Economics (IZA).
    17. Elisabet Motellón & Enrique López-Bazo, 2015. "Job Loss Among Immigrant and Native Workers: Evidence from Spain’s Economic Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 345-371, January.
    18. Daniel Rauhut & Birgit Aigner-Walder & Rahel M. Schomaker, 2023. "Economic Theory and Migration," Springer Books, in: The Economics of Immigration Beyond the Cities, chapter 0, pages 21-50, Springer.
    19. Bernt Bratsberg & Oddbjørn Raaum, 2012. "Immigration and Wages: Evidence from Construction," Economic Journal, Royal Economic Society, vol. 122(565), pages 1177-1205, December.
    20. Francesco Fasani & Jacopo Mazza, 2023. "Being on the Frontline? Immigrant Workers in Europe and the COVID-19 Pandemic," ILR Review, Cornell University, ILR School, vol. 76(5), pages 890-918, October.

    More about this item

    Keywords

    Labour supply; Great Recession; Immigrant worker; Labour shortage; Skilled migration; Wage regression; J24; J61; J68;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijmpps:ijm-08-2017-0205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.