2021/09/26 by Yuliya Kosyakova, Herbert Brücker · 1 voice
Social Sciences · Economics, Econometrics and Finance · #Migration and Labor Dynamics #Economic Policies and Impacts #Labor market dynamics and wage inequality
paper · pdf · doi:10.1093/migration/mnab047
openalex publication_date 2021/09/26 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/20
Abstract Extending free movement of workers (FMW) to the new Member States from Central and Eastern Europe was one of the most controversial political decisions in the history of the European Union. In this article, we study how the introduction of FMW affected immigrants’ labor market integration in Germany. Using data from the IAB-SOEP Migration Sample,1 we show that the introduction of FMW was associated with a higher influx of skilled workers. Moreover, FMW has increased the probability of labor market entry within one year after arrival by 12 percentage points. Correspondingly, FMW improved welfare not only by increasing the scale of migration but also by raising immigrants’ skill level and reducing the time before entry into the labor market. Our findings thus yield new insights on the beneficial effects of FMW on labor market integration of immigrants in the Common Market.