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Empirical investigation on labour market interactions in an enlarged Europe

This paper proposes an empirical assessment of economic interactions between the labour markets ofthe integrating EU over the period of time 1995-2005. Drawing on recently made available industrystatistics, we provide a sector level study (13 tradable sectors, including manufacturing and services),analysing the contemporary evolution of domestic and trade partners' employment levels. Given theintensification of trade relations as a result of ongoing integration process, we build a sector-specificmeasure of economic interdependency, based on information on labour markets' performance andweighted by the magnitude of intra-EU trade flows (imports). The estimates of a dynamic empiricalmodel confirm the interactions between employment levels in different Member States. Domesticemployment in NMS-5 is rather positively affected by the expansion of labour markets in other EU'strade partners (domestic employment levels in NMS-5 countries improve in parallel to the increase inforeign tradable sectors' employment). The opposite holds true for EU-15 domestic labour markets thatare rather challenged by the expansion of tradable sectors in their EU trade partners.

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Informacje dodatkowe

Kategoria
Publikacja w czasopiśmie
Typ
artykuły w czasopismach recenzowanych i innych wydawnictwach ciągłych
Język
angielski
Rok wydania
2009

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