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ECONOMIC CONSEQUENCES OF THE POSTED WORKERS DIRECTIVE
Article first published online: 7 OCT 2004
DOI: 10.1111/j.1467-999X.2004.00200.x
1467-999X/asset/cover.gif?v=1&s=ef37e06884a621586f4257c06aa709f731e6e460 "Metroeconomica")
Additional Information
How to Cite
Meier, V. (2004), ECONOMIC CONSEQUENCES OF THE POSTED WORKERS DIRECTIVE. Metroeconomica, 55: 409–431. doi: 10.1111/j.1467-999X.2004.00200.x
Publication History
- Issue published online: 7 OCT 2004
- Article first published online: 7 OCT 2004
- (June 2001; revised December 2002)
- Abstract
- References
- Cited By
ABSTRACT
The consequences of an increase in the minimum wage for foreign workers in the construction sector, implied by the EU Posted Workers Directive, are analyzed. Due to the rising price of construction services, the factor demand for both construction services and capital in the tradeable good sector falls, and the wage rate in this sector declines. While the share of domestic workers increases with respect to both foreign workers and capital in the construction sector, this need not suffice to reduce unemployment. A possible higher level of employment of natives is not sufficient to raise natives’ welfare.