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Research ArticleArticles

Crossing Borders

Labor Market Effects of European Integration

Hannah Illing
Published online before print June 05, 2025, 0223-12764R3; DOI: https://doi.org/10.3368/jhr.0223-12764R3
Hannah Illing
†University of Bonn, IAB, IZA, Department of Economics at the University of Bonn ().
Roles: postdoctoral researcher
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Abstract

This paper investigates an EU policy reform that granted Czech citizens full access to the German labor market. Exploiting the fact that the reform specifically impacted the Czech and German border regions, I use a matched difference-in-differences design to estimate local labor markets effects in both countries. I show that the Czech border region experienced a decline in unemployment rates and an increase in vacancies, while local labor markets in Germany remained unaffected. Overall, my findings suggest that the Czech border region faced labor shortages, while local labor markets in Germany were able to fully absorb the migrant inflow.

Keywords
  • Out-Migration
  • In-Migration
  • Local Labor Markets
JEL codes:
  • J61
  • J15
  • R23

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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Crossing Borders
Hannah Illing
Journal of Human Resources Jun 2025, 0223-12764R3; DOI: 10.3368/jhr.0223-12764R3

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Crossing Borders
Hannah Illing
Journal of Human Resources Jun 2025, 0223-12764R3; DOI: 10.3368/jhr.0223-12764R3
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Keywords

  • Out-Migration
  • In-Migration
  • Local Labor Markets
  • J61
  • J15
  • R23
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