Market Expansion and Social Dumping in Europe

Abstract

Post-enlargement mobility brings economic benefits but may result in socioeconomic cleavages between migrants and natives. Using EU Labour Force Survey data and decomposition techniques, we distinguish between migrant–native gaps that can be explained by differences in observable characteristics and those that are due to unobservable factors such as disparities in social or ethnic capital, language skills or discrimination. We find that although observed factors explain some of the gaps, significant cleavages due to unobservable factors remain unexplained in relation to labour market participation and unemployment, self-employment, over-education, low-skill employment and temporary contracts. We conclude that equal treatment and skill mismatch remain key policy challenges for the EU. Chapter Download Publisher link

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