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The demand for skills and the labor cost in partner countries: evidence from the enlarged EU

We analyse the consequences of trade integration in Europe (1995-2005) detecting how thelabor costs in partner countries affects the demand for domestic high- and low-skilled labor inthe EU-15 (Old) and five New member states. In general, independently on the skill level, the resultshint at complementarity between domestic and foreign labor. However, the demand for thehigh skilled in New EU members' low skill intensive sectors is boosted by the increase of theaverage labor cost in Old EU members. It suggests that the high skilled employed in these setors inNew member countries substitute for labor in Old EU countries.

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Additional information

Category
Publikacja w czasopiśmie
Type
publikacja w in. zagranicznym czasopiśmie naukowym (tylko język obcy)
Language
angielski
Publication year
2010

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