RT Journal Article
SR Electronic
T1 Labor Market Effects of Open Borders
JF Journal of Human Resources
FD University of Wisconsin Press
SP 434
OP 468
DO 10.3368/jhr.0321-11546R2
VO 60
IS 2
A1 Kuosmanen, Isa
A1 Meriläinen, Jaakko
YR 2025
UL http://jhr.uwpress.org/content/60/2/434.abstract
AB The eastern enlargement of the EU differentially exposed workers in different regions and occupations in Finland to a 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.