TY - JOUR T1 - Labor Market Effects of Open Borders: Evidence from the Finnish Construction Sector after EU Enlargement JF - Journal of Human Resources JO - J Hum Resour DO - 10.3368/jhr.0321-11546R2 SP - 0321-11546R2 AU - Isa Kuosmanen AU - Jaakko Meriläinen Y1 - 2022/07/11 UR - http://jhr.uwpress.org/content/early/2022/07/06/jhr.0321-11546R2.abstract N2 - The eastern enlargement of the EU differentially exposed workers in different regions and occupations in Finland to foreign workforce, in particular to posted workers. Using a triple-differences strategy and detailed individual-level administrative data, we document robust evidence that the entry of new EU countries decreased the annual earnings of vulnerable workers relative to less vulnerable workers in the construction sector. This decrease was persistent even ten years after the enlargement and economically meaningful, about 9 percent (roughly a month’s salary per year), on average. We also show a small increase in unemployment and provide evidence on different adjustment mechanisms. ER -