Abstract: This paper studies labor market effects of out-migration and in-migration in the context of cross-border commuting. It investigates an EU policy reform granting Czech citizens free access to the German labor market from 2011, to quantify the impact of East-West migration on local labor markets in both countries. The majority of Czech workers commutes across the border to Germany and I exploit this spatial variation for a difference-in-differences approach. Using a novel dataset on Czech regions, I show that municipalities in the Czech border region experienced a decline in unemployment rates as result of the worker outflow, while vacancies increased. For German municipalities, I find no effects on regional employment, and lower wage growth in the long term. I then extend the analysis from the regional to the individual level, enabling me to investigate labor market effects of native incumbent workers in Germany. These workers experienced lower wage growth, but increased employment such that their earnings relative to control workers remained constant. A heterogeneity analysis shows that low-tenure and medium skilled workers particularly suffered in terms of lower wage growth, suggesting that the worker inflow increased inequality in the German border region.