Research

Professor Andrea Weber, Central European University

"The Returns to International Migration in a Free Mobility Setting: Evidence from Austria and Germany"
Wednesday, 29 April 2026. 15:00
Room 386AB ASBS

Abstract

How big are the gains to international migration? How do they vary across migrants? We study these questions using linked administrative data for Austria and Germany, focusing on migrants who were steadily employed 5-12 quarters prior to their move and using co-workers from this period as a comparison group for a difference-in-differences design. Over 40% of cross-border migrants return home within a few years. We combine data from the origin and destination countries for 5 years after the move; we also look separately at stayers and returners. On average, migrants from Austria to Germany experience an immediate and persistent rise of around 10% in their daily wage relative to their matched co-workers, while migrants from Germany to Austria gain about 4%. The distribution of wages is compressed in Austria relative to Germany, but we see larger gains for lower-skilled Austrian migrants, contrary to a simple one-factor model. The longer-run returns to migration are largest for migrants who remain in the destination country, smaller for those who return after 1-4 years, and zero for those who return in less than a year. They are also larger for those who switch their country of work with no intervening spell of unemployment, and for migrants who follow established cross-border networks between workplaces. To help interpret our findings, we conduct a parallel analysis for Austrians from smaller cities and non-urban areas who move to Vienna. Migrants to the ''big city'' get a boost in wages – albeit smaller than the gains to international migration -- but there is little effect for those who eventually leave.

"The Returns to International Migration in a Free Mobility Setting: Evidence from Austria and Germany" (joint with David Card, Wolfgang Dauth, Wolfgang Frimmel, Julia Schmieder, Rudolf Winter-Ebmer)

Bio

Andrea Weber is an applied labor economist and her current research focuses on the interaction of labor markets with social insurance systems, the dynamics of unemployment, gender differences in the labor market, and the mobility of workers in the European Union.

Andrea Weber received her Doctorate at the Vienna University of Technology in 2002. Prior to joining CEU she was professor of labor economics at the Vienna University of Economics and Business, professor of economics at the University of Mannheim, and visiting assistant professor at UC Berkeley.

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First published: 9 April 2026