IDEAS home Printed from https://ideas.repec.org/a/vrs/buogeo/v45y2019i45p45-58n3.html
   My bibliography  Save this article

Optimal Spatial Allocation of Labour Force and Employment Protection Legislation (EPL)

Author

Listed:
  • Gamito Carlos Coca

    (European University Institute, Florence, Italy)

  • Baltos Georgios

    (University of the Aegean, Chios, Greece and European Uiversity Institute, Florence, Italy)

Abstract

The paper introduces a model of how workers rationally decide to which country within an area of monetary and economic integration they will move for the purposes of living and working. Since Mundell accomplished his pivotal respective analyses, the Optimal Currency Area (OCA) literature has highlighted the importance of the reallocation of the labour force within common currency areas in order to cushion asymmetric shocks. However, several studies have put into question whether such a mobility may be considered adequately effective and efficient within the Euro Zone and, hence, political solutions have been urgently requested. This paper, using the concept of employment protection legislation (EPL), looks at the impact of the different flexibility degrees applied among national labour markets on the international labour movements within the Euro Zone, and it then proposes a reform of such in terms of the degrees of flexibility that could achieve the optimal point.

Suggested Citation

  • Gamito Carlos Coca & Baltos Georgios, 2019. "Optimal Spatial Allocation of Labour Force and Employment Protection Legislation (EPL)," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 45(45), pages 45-58, September.
    • Handle: RePEc:vrs:buogeo:v:45:y:2019:i:45:p:45-58:n:3
    DOI: 10.2478/bog-2019-0023
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/bog-2019-0023
    Download Restriction: no
    File URL: https://libkey.io/10.2478/bog-2019-0023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arthur Sweetman & James Ted McDonald & Lesleyanne Hawthorne, 2015. "Occupational Regulation and Foreign Qualification Recognition: An Overview," Canadian Public Policy, University of Toronto Press, vol. 41(s1), pages 1-13, August.
    2. Robert Holzmann & Martin Werding, 2015. "Portability of Social Benefits: Research on a Critical Topic in Globalization," CESifo Economic Studies, CESifo Group, vol. 61(2), pages 335-345.
    3. Olivier Blanchard, 2006. "European unemployment: the evolution of facts and ideas [‘The macroeconomics of low inflation’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 21(45), pages 6-59.
    4. Alfonso Arpaia & Aron Kiss & Balazs Palvolgyi & Alessandro Turrini, 2016. "Labour mobility and labour market adjustment in the EU," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-21, December.
    5. Giovanni Peri, 2014. "Do immigrant workers depress the wages of native workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-42, May.
    6. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    7. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    8. Alfonso Arpaia & Aron Kiss & Balazs Palvolgyi & Alessandro Turrini, 2018. "The effects of European integration and the business cycle on migration flows: a gravity analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 815-834, November.
    9. Ekaterina Sprenger, 2013. "The Determinants of International Migration in the European Union: An Empirical Analysis," Working Papers 325, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    10. Guerriero, Marta & Sen, Kunal, 2012. "What Determines the Share of Labour in National Income? A Cross-Country Analysis," IZA Discussion Papers 6643, Institute of Labor Economics (IZA).
    11. Charles WYPLOSZ, 2006. "Deep Economic Integration: Is Europe a Blueprint?," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 259-279, December.
    12. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications - Books, The World Bank Group, number 15172.
    13. Charles Brown, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(1), pages 113-134.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lastauskas, Povilas & Stakėnas, Julius, 2020. "Labor market reforms and the monetary policy environment," European Economic Review, Elsevier, vol. 128(C).
    2. Brancaccio, Emiliano & Garbellini, Nadia & Giammetti, Raffaele, 2018. "Structural labour market reforms, GDP growth and the functional distribution of income," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 34-45.
    3. Amaral, Pedro S. & Tasci, Murat, 2016. "The cyclical behavior of equilibrium unemployment and vacancies across OECD countries," European Economic Review, Elsevier, vol. 84(C), pages 184-201.
    4. Gabriel Felbermayr & Julien Prat, 2011. "Product Market Regulation, Firm Selection, And Unemployment," Journal of the European Economic Association, European Economic Association, vol. 9(2), pages 278-317, April.
    5. Koeniger, Winfried & Leonardi, Marco, 2006. "Capital Deepening and Wage Differentials: Germany vs. US," IZA Discussion Papers 2065, Institute of Labor Economics (IZA).
    6. James Albrecht & Pieter A. Gautier & Susan Vroman, 2006. "Equilibrium Directed Search with Multiple Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(4), pages 869-891.
    7. Boulhol, Hervé, 2011. "Unemployment and relative labor market institutions between trading partners," Journal of International Economics, Elsevier, vol. 83(1), pages 83-91, January.
    8. Manger, Mark, 2008. "International Investment Agreements and Services Markets: Locking in Market Failure?," World Development, Elsevier, vol. 36(11), pages 2456-2469, November.
    9. Frédéric Gavrel & Isabelle Lebon & Therese Rebière, 2010. "Career Paths, Unemployment, and the Efficiency of the Labor Market: Should Youth Employment Be Subsidized?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 533-560, June.
    10. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    11. Bental, Benjamin & Demougin, Dominique M., 2006. "Institutions, bargaining power and labor shares," SFB 649 Discussion Papers 2006-009, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    12. Alogoskoufis, George & Malliaris, A.G. & Stengos, Thanasis, 2023. "The scope and methodology of economic and financial asymmetries," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).
    13. repec:dau:papers:123456789/4294 is not listed on IDEAS
    14. Rogerson, Richard & Shimer, Robert, 2011. "Search in Macroeconomic Models of the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 7, pages Pages: 61, Elsevier.
    15. Sargent, Kristina, 2023. "The labor market impacts of Brexit: Migration and the European union," Economic Modelling, Elsevier, vol. 121(C).
    16. Ljungqvist, Lars & Sargent, Thomas J., 2007. "Understanding European unemployment with matching and search-island models," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2139-2179, November.
    17. Ivana Drazenovic & Marina Kunovac & Dominik Pripuzic, 2018. "Dynamics and determinants of emigration: the case of Croatia and the experience of new EU member states," Public Sector Economics, Institute of Public Finance, vol. 42(4), pages 415-447.
    18. Junichi Fujimoto, 2008. "Implications of General and Specific Productivity Growth in a Matching Model," 2008 Meeting Papers 584, Society for Economic Dynamics.
    19. Eric J. Bartelsman & Pieter A. Gautier & Joris De Wind, 2016. "Employment Protection, Technology Choice, And Worker Allocation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(3), pages 787-826, August.
    20. Ekaterina Sprenger, 2021. "What makes us move, what makes us stay: The role of culture in intra-EU mobility," SERIES 04-2021, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Oct 2021.
    21. Hervé Boulhol, 2008. "Unemployment and interactions between trade and labour market institutions," Post-Print halshs-00261478, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:buogeo:v:45:y:2019:i:45:p:45-58:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.