The impact of European integration on wage differentials in the Bavarian-Czech border region

Abstract

"In the process of European integration labour markets are assumed to be affected disproportionately in regions bordering on new EU member countries. According to the Feenstra-Hanson model low-skilled workers in the border regions are predicted to suffer notably from increasing trade and the relocation of production activities to low-wage countries, while high-skilled workers should benefit from the increasing market potential. Using data from the IAB employment subsample (IABS) and the employment register (BeH) the wage differentials between workers in eastern Bavaria and western German districts are estimated. These estimations show, while in the early years after the fall of the Iron Curtain a catching-up process set in for the bulk of employees in eastern Bavaria, the trend reverses after 1995 and the wage gap deepens again." (Author's abstract, IAB-Doku) ((en))

Cite article

Moritz, M. (2009): The impact of European integration on wage differentials in the Bavarian-Czech border region. In: Wirtschafts- und Sozialstatistisches Archiv, Vol. 3, No. 2, p. 137-151. DOI:10.1007/s11943-009-0065-z