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The freedom of movement of persons is one of the core tenets of the European Union. Immigration however is often seen as a cause for concern amongst native workers, as rising labour supply may threaten jobs and create downward pressure on wages. National politicians are increasingly under pressure to guard against it -in times of recession particularly. Despite this, there is evidence that highly-skilled migrant labour has the potential to raise competitiveness significantly and in theory this may feed into productivity. In this paper, we explore first the composition of inward migration to the EU and within the EU, concentrating specifically on the role of the highly-skilled and the extent to which migrants are overqualified within their jobs. We then analyse whether migrant workers affect productivity at the sectoral level. We find underutilisation of skilled foreign labour and there is little evidence in general to suggest that migrants have raised productivity which may in part be attributable to over-qualification. However, we find robust evidence that migrants -particularly highly-skilled migrants -play a positive role in productivity developments in industries which are classified as 'skill intensive'.
We analyze regional labor market disparities in transition by presenting some data and summarizing existing literature. We find that large and persistent regional labor market disparities developed in virtually all transition countries and that there is some evidence of polarization. Differences in starting conditions and market access seem to be the major reasons for regional divergence in transition. Furthermore, regional wages are only slightly more flexible than in many EU labor markets, inter-regional migration is low and capital seems to move towards high wage and low unemployment urban centers rather than to the most backward regions. Policy should thus take a long-run perspective on the existing regional disparities, focus on removing barriers to mobility, review existing institutions for implementing regional policy and aim at a close co-ordination of regional and labor market policy instruments.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe study differences in contributory and non-contributory welfare benefit receipt between immigrants and natives for 16 EU countries. In contrast to previous studies we analyse differences in benefit levels allowing for potentially different takeup rates between immigrants and natives and use Oaxaca-Blinder decompositions to discuss residual welfare dependence. Results point to substantial heterogeneity in welfare dependence between countries when not controlling for observed characteristics of immigrants and natives. This is primarily due to different selection into benefits between immigrants and natives and differences in their characteristics (mainly income, personal, and household characteristics). Once this is controlled for, immigrants participate at most equally often in both types of benefits as natives and usually also receive lower or comparable benefit levels. Abstract We study differences in contributory and non-contributory welfare benefit receipt between immigrants and natives for 16 EU countries. In contrast to previous studies we analyze differences in benefit levels allowing for potentially different takeup rates between immigrants and natives and use Oaxaca-Blinder decompositions to discuss residual welfare dependence. Results point to substantial heterogeneity in welfare dependence between countries when not controlling for observed characteristics of immigrants and natives. This is primarily due to different selection into benefits between immigrants and natives and differences in their characteristics (mainly income, personal, and household characteristics). Once this is controlled for, immigrants participate at most equally often in both types of benefits as natives and usually also receive lower or comparable benefit levels.
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