Labor Market Effects of Open Borders: Evidence from the Finnish Construction Sector after EU Enlargement

A-Tier
Journal: Journal of Human Resources
Year: 2025
Volume: 60
Issue: 2

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The eastern enlargement of the EU differentially exposed workers in different regions and occupations in Finland to a foreign workforce, in particular to posted workers. Using a triple-differences strategy and detailed individual-level administrative data, we document robust evidence that the entry of new EU countries decreased the annual earnings of vulnerable workers relative to less vulnerable workers in the construction sector. This decrease was persistent even ten years after the enlargement and economically meaningful, about 9 percent (roughly a month’s salary per year), on average. We also show a small increase in unemployment and provide evidence on different adjustment mechanisms.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:60:y:2025:i:2:p:434-468
Journal Field
Labor
Author Count
2
Added to Database
2026-01-26