The completion of the European internal market is generally expected to have beneficial welfare and growth effects. To what extent will they lead to a change in employment? How will the employment effects be distributed among countries, industries and social groups?

This paper explores the mechanisms by which economic integration leads to increased trade between new and old member states of the EC. Theoretical considerations imply that the increase in the export value should, to a large extent, be due to new exporters entering new markets. Moreover, small...