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Labour Mobility - An Adjustment Mechanism in Euroland?

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  • Puhani, Patrick A.

    (Leibniz University of Hannover)

Abstract

The purpose of this paper is to evaluate whether labour mobility is likely to act as a sufficient adjustment mechanism in the face of asymmetric shocks in Euroland. To this end, we estimate the elasticity of migration with respect to changes in unemployment and income on the basis of regional panel data provided by Eurostat, the statistical office of the European Union. Regression results are provided for Western Germany, France, and Italy. It is shown that labour mobility is highest in Germany, followed by France, and Italy. However, even in Germany, the accommodation of a shock to unemployment by migration takes several years. We conclude that labour mobility is extremely unlikely to act as a sufficient adjustment mechanism to asymmetric shocks in Euroland.

Suggested Citation

  • Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp34
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    References listed on IDEAS

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    Cited by:

    1. Maria Francesca Cracolici & Miranda Cuffaro & Peter Nijkamp, 2007. "Geographical Distribution of Unemployment: An Analysis of Provincial Differences in Italy," Growth and Change, Wiley Blackwell, vol. 38(4), pages 649-670, December.
    2. Patrick A. Puhani, 2001. "Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy," German Economic Review, Verein für Socialpolitik, vol. 2(2), pages 127-140, May.
    3. Dennis Nchor, 2020. "Labour mobility as an adjustment mechanism to asymmetric shocks in Europe: evidence from the Czech Republic, Hungary, Poland and Slovakia," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-19, December.
    4. repec:jes:wpaper:y:2011:v:3:p:579-591 is not listed on IDEAS
    5. Franz, Wolfgang, 1999. "Real and monetary challenges to wage policy in Germany at the turn of the millennium: technical progress, globalization and European Monetary Union," ZEW Discussion Papers 99-48, ZEW - Leibniz Centre for European Economic Research.
    6. Danuše Nerudová & Svatopluk Kapounek, 2007. "The empirical study of the tax competition in the European Union [Empirická analýza daňové soutěže v Evropské unii]," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 55(3), pages 75-84.
    7. Cristina Puiu, 2011. "Labour Mobility As An Adjustment Mechanism In The Euro Area," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3(4), pages 579-591, December.
    8. Horvath, Julius, 2003. "Optimum currency area theory: A selective review," BOFIT Discussion Papers 15/2003, Bank of Finland Institute for Emerging Economies (BOFIT).
    9. Richard Nahuis & A. Parikh, 2002. "Factor mobility and regional disparities; east, west, home's best?," CPB Discussion Paper 4, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Antje Mertens & Anette Haas, 2005. "Regional Unemployment and Job Switches in Germany – An Analysis at District Level," ERSA conference papers ersa05p592, European Regional Science Association.
    11. Iulia Siedschlag, 2008. "Macroeconomic Differentials and Adjustment in the Euro Area," SUERF Studies, SUERF - The European Money and Finance Forum, number 2008/3 edited by Morten Balling, May.
    12. Richard Nahuis & A. Parikh, 2002. "Factor mobility and regional disparities; east, west, home's best?," CPB Discussion Paper 4.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Maciej Bukowski & Piotr Lewandowski & Iza Sobiech & Andrzej Zurawski & Jan Gaska & Aleksander Sniegocki, 2011. "Employment in Poland 2010. Integration and Globalization," Books and Reports published by IBS, Instytut Badan Strukturalnych, number zwp2010 edited by Maciej Bukowski, january.
    14. Timo MITZE & Björn ALECKE & Gerhard UNTIEDT, 2008. "Determinants of Interregional Migration Among German States and its Implications for Reducing East-West Disparities: Results from a Panel VAR Using Efficient GMM Estimation," EcoMod2008 23800089, EcoMod.
    15. Michela Martinoia, 2011. "European Integration, Labour Market Dynamics and Migration Flows," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 97-127, June.
    16. Dennis Nchor, 2020. "Labour mobility as an adjustment mechanism to asymmetric shocks in Europe: evidence from the Czech Republic, Hungary, Poland and Slovakia," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-19, December.
    17. Arntz, Melanie, 2005. "The Geographical Mobility of Unemployed Workers: Evidence from West Germany," ZEW Discussion Papers 05-34, ZEW - Leibniz Centre for European Economic Research.
    18. Danuše Nerudová & Svatopluk Kapounek & Jitka Poměnková, 2007. "Tax Competition in the European Union and Its Influence on the Shift in the Tax Burden [Daňová soutěž v Evropské měnové unii a její vliv na přesun daňového břemene]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2007(2), pages 55-72.
    19. repec:iab:iabjlr:v:54:i::p:art.16 is not listed on IDEAS
    20. Wozniak, Abigail, 2006. "Educational Differences in the Migration Responses of Young Workers to Local Labor Market Conditions," IZA Discussion Papers 1954, Institute of Labor Economics (IZA).
    21. Ziółkowski Michał, 2014. "Geographic Labor Mobility as an Element of Adjustment Process in the Eurozone Countries and the USA States," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 41(1), pages 23-44, March.
    22. Mitze, Timo & Reinkowski, Janina, 2010. "Testing the Validity of the Neoclassical Migration Model: Overall and Age-Group Specific Estimation Results for German Spatial Planning Regions," MPRA Paper 23616, University Library of Munich, Germany.

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    More about this item

    Keywords

    euro; labour mobility; European Monetary Union (EMU);
    All these keywords.

    JEL classification:

    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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