Abstract
Majority of studies proved that labor mobility and the effect of immigration differs with respect to the business cycle. The aim of the paper is to investigate differences in workers allocation within European countries during recession and expansion period. The presented analysis split European counties on two groups: a) West and South Europe; b) Middle and East Europe (post-communist economies). The specialization of workers is studied concentrating on differences between natives and immigrants with secondary or lower education. For the expansion period was found a sizable relocation of native workers to occupations with more interactive rather than manual content after immigration in West and South European counties. This effect was not found for recession period and for post-communist economies.
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