Summary: This paper is motivated by the idea that the enlargement of the European Un- ion is only one part of an overall process,known as economic integration, which characterizes the involvement of European economies into the global division of labor.Therefore,the paper aims at providing a quantitative and qualitative assessment of the impact of economic integration on employment and labor market dynamics in current EU-member and candidate countries. The ultimate aim of this analysis is the provision of forecasts for future labor market developments in the context of EU-enlargement.To this end,we in- vestigate this nexus not only on an economy-wide level,but analyze whether the impact of integration varies for different sectors (automotive and financial services)of the economy.The estimation results suggest that future integra- tion processes lead to an increase of economy-wide employment in the acces- sion countries and a small,if any,rise in this outcome variable in the current EU-countries.Moreover,it could be expected that unemployment rates in the accession countries will decline somewhat,whereas those of the current EU-member states will probably experience an increase.Finally,it is very likely that the structure of employment will shift further towards a higher share of service sector employment.
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