Abstract

This paper quantifies the labor market effects of recent EU immigration. Using administrative SIAB data for 75 regions in western Germany, we first identify natives, former immigrants and new immigrants. In addition, we divide new immigrants into "new arrivals" and "stayers" to separately identify the short- and medium-term effects of EU immigration. For natives, we find a temporary negative wage effect, particularly at the lower end of the wage distribution. For permanent foreign nationals, there is also a permanent negative wage effect, but only at the lower end of the wage distribution.