Developments in the field of wage dumping

This research builds on the results of a study from 2012 on the impact of labor market liberalization and on employment patterns and wage dumping. Today, the end of the transitional arrangements for workers from Romania and Bulgaria by 1.1.2014 is the reason to take a renewed look at recent developments. We will focus on those regions and sectors, for which specific distorsions could be monitored so far, particularly the border regions in eastern Austria (Burgenland, Lower Austria, Vienna) as well as the construction and catering industries.

The objective was to provide current and empirically proven evidence, that allow a profound discussion of the issue of wage dumping and to politically argue and develop possible countermeasures. As to the methods, the study was based on:

1. Interviews with experts from different institutions on their labor market observations since early 2012
2. Research and preparation of cases of wage and social dumping
3. Analysis of the evolution of postings to Austria, especially from EU-8 and EU-2 nationals