ABSTRACT
The historic enlargement of the European Union (EU) by eight new members from Central and Eastern Europe in May 2004 and by another two in 2007 marked the end of a divided Europe. The free mobility of services from low wage countries and the perceived wage threat from it is a new phenomenon in the old EU countries, including Sweden. Using a register database constructed by the Swedish Institute for European Policy Studies (SIEPS) Gerdes and Wadensjo discuss the employment rates of immigrants from the new member states. Norway opened its labour market for immigration as a European Economic Area member. The possibilities for avoiding large swings in economic activity have increased for Sweden and the other immigration countries, making it easier for the central banks to contain inflation and for the government to maintain a balanced budget. In total, around 150,000 work permits were issued by the Nordic countries between May 2004 and August 2007.
