Cross-border work is expanding in the EU, yet its consequences for commuters are largely undocumented. Combining Belgian and Luxembourg registers, we follow cross-border spells from entry to return with an imputation event study validated by dynamic double machine learning. During the spell, workers earn a wage premium of about 40% on average, rising with tenure. On return, employment falls transitorily after short spells but persistently after long ones. Lower-skill returnees bear a lasting wage loss. The sending country forgoes more in fiscal contributions than it saves in unemployment benefits, a loss exceeding the receiving country’s gain; commuters capture the difference.
Friday, 26 June, the 10th edition of the Grande Région Cahiers was officially presented in Esch-Belval. Launched in 2019 by Franz Clément and published by LISER, this publication series explores key issues affecting the Greater Region.
