PT  - JOURNAL ARTICLE
AU  - Kuosmanen, Isa
AU  - Meriläinen, Jaakko
TI  - Labor Market Effects of Open Borders: Evidence from the Finnish Construction Sector after EU Enlargement
AID  - 10.3368/jhr.0321-11546R2
DP  - 2022 Jul 11
TA  - Journal of Human Resources
PG  - 0321-11546R2
4099  - http://jhr.uwpress.org/content/early/2022/07/06/jhr.0321-11546R2.short
4100  - http://jhr.uwpress.org/content/early/2022/07/06/jhr.0321-11546R2.full
AB  - 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.