WIFO Working Papers

Discussion papers by WIFO staff, consultants and guests – As of 2006 available online only – Free download

WIFO Working Papers are not peer reviewed and are not necessarily based on a coordinated position of WIFO. The authors were informed about the Guidelines for Good Scientific Practice of the Austrian Agency for Research Integrity (ÖAWI), in particular with regard to the documentation of all elements necessary for the replicability of the results.

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Labor Supply Shocks and the Beveridge Curve. Empirical Evidence from EU Enlargement
WIFO Working Papers, 2020, (606), 38 pages
Revised version (August 2020)
Online since: 28.08.2020 0:00
Labor supply shocks can have substantial effects on the Beveridge Curve. Structural VARs with sign restrictions show that the shocks associated with the free movement of workers from Eastern Europe have temporarily increased unemployment in Austria, a major destination country, by 25 percent and job vacancies by 40 percent. The 2 percent increase in total employment was accompanied by a temporary decline in the employment of domestic workers. The greatest impact is seen in regions bordering on the home countries of the migrant workers. Beyond these findings the paper addresses empirical regularities of labor supply shocks that are at odds with theoretical predictions.
JEL-Codes:C32, F66, J21, J63
Keywords:labour supply shocks, Beveridge curve, job-related migration, sign restrictions, structural VAR KP_Berichte_Analysen
Research group:Macroeconomics and European Economic Policy