Labour migrants unbound?

Abstract

"When ten new member states joined the European Union in May 2004, the free movement of workers was temporarily postponed for up to seven years. Most of the old EU member states introduced transitional regimes based on their national regulations, while a small handful chose to apply Community law. This study examines the labour market effects of free and restricted mobility among EU workers under four different national regimes. Sweden and the UK applied liberal regimes while Austria and Germany decided on restrictive measures. Outcomes are somewhat unexpected, two years after enlargement.<br> The inflow of labour has mainly been demand-driven. Sweden has only had a modest inflow due to jobless growth and a regulatory framework dominated by collective agreements and strong unions. The UK has experienced robust economic growth. Labour from new member states has played a vital role in filling labour market gaps. Austria and Germany have experienced further inflows from new member states due to such factors as their geographic location and the migrant networks already in place, their prolonged seasonal labour programmes, and increased numbers of self-employed service providers. Irregular migrant labour and higher unemployment rates among residents from the new member states are unsolved problems. Continued restrictions might shield core parts of the domestic labour force from additional competition and delay labour market adjustments." (Author's abstract, IAB-Doku) ((en))

Cite article

Tamas, K. & Münz, R. (2006): Labour migrants unbound? EU enlargement, transitional measures and labour market effects. (Society and the future research report series 02), Stockholm, 159 p.