RT Journal Article
SR Electronic
T1 Crossing Borders
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0223-12764R3
DO 10.3368/jhr.0223-12764R3
A1 Illing, Hannah
YR 2025
UL http://jhr.uwpress.org/content/early/2025/06/02/jhr.0223-12764R3.abstract
AB 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.