IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2018066061497.html
   My bibliography  Save this article

The Role of Migration as Adjustment Mechanism in the Crisis and EMU

Author

Listed:
  • Peter Huber

    (Austrian Institute of Economic Research (WIFO) and Ekonomikos Fakultetas, Vilniaus Universitetas, Arsenal, Objekt 20, 1030 Wien, Austria)

Abstract

Using ELFS data from 2004 to 2014 we analyse labour migration as an adjustment mechanism to asymmetric regional labour demand shocks shortly before, during and after the Great Recession in the EU. The results suggest that in this period migration was rather responsive to regional economic conditions, but also point to a substantial heterogeneity across demographic groups, periods and country groups. The mobility of high-skilled persons and foreign born contributed much more strongly to the adjustment of labour markets than the migration of less-skilled and natives. Furthermore, among the large integration steps from 2004 to 2014 (i.e., the accession of 12 countries to the EU and the successive liberalisation of immigration from the countries joining the EU after 2004 and Euro accession) mainly the EU-enlargements worked to improve the adjustment capability of European labour markets through migration.

Suggested Citation

  • Peter Huber, 2018. "The Role of Migration as Adjustment Mechanism in the Crisis and EMU," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(6), pages 1497-1508.
    • Handle: RePEc:mup:actaun:actaun_2018066061497
    DOI: 10.11118/actaun201866061497
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201866061497.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201866061497.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201866061497?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ugo Fratesi & Andrés Rodríguez-Pose, 2016. "The crisis and regional employment in Europe: what role for sheltered economies?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 33-57.
    2. Steven Brakman & Harry Garretsen & Charles van Marrewijk, 2015. "Regional resilience across Europe: on urbanisation and the initial impact of the Great Recession," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 225-240.
    3. Riccardo Crescenzi & Davide Luca & Simona Milio, 2016. "Editor's choice The geography of the economic crisis in Europe: national macroeconomic conditions, regional structural factors and short-term economic performance," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 13-32.
    4. Peter Huber & Gabriele Tondl, 2012. "Migration and regional convergence in the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 439-460, November.
    5. Raven Molloy & Christopher L. Smith & Abigail Wozniak, 2011. "Internal Migration in the United States," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 173-196, Summer.
    6. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
    7. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    8. Lourens Broersma & Jouke van Dijk, 2002. "Regional labour market dynamics in the Netherlands," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 343-364.
    9. Abigail Wozniak, 2010. "Are College Graduates More Responsive to Distant Labor Market Opportunities?," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 944-970.
    10. Julia Jauer & Thomas Liebig & John P. Martin & Patrick Puhani, 2014. "Migration as an Adjustment Mechanism in the Crisis? A Comparison of Europe and the United States," OECD Social, Employment and Migration Working Papers 155, OECD Publishing.
    11. Bernard Fingleton & Harry Garretsen & Ron Martin, 2012. "Recessionary Shocks And Regional Employment: Evidence On The Resilience Of U.K. Regions," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 109-133, February.
    12. Amuedo-Dorantes, Catalina & de la Rica, Sara, 2005. "Immigrants' Responsiveness to Labor Market Conditions and Its Implications on Regional Disparities: Evidence from Spain," IZA Discussion Papers 1557, Institute of Labor Economics (IZA).
    13. Jimeno, Juan F. & Bentolila, Samuel, 1998. "Regional unemployment persistence (Spain, 1976-1994)," Labour Economics, Elsevier, vol. 5(1), pages 25-51, March.
    14. Brian C. Cadena & Brian K. Kovak, 2016. "Immigrants Equilibrate Local Labor Markets: Evidence from the Great Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 8(1), pages 257-290, January.
    15. Sari Pekkala & Aki Kangasharju, 2002. "Regional labor markets in Finland: Adjustment to total versus region-specific shocks," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(3), pages 329-342.
    16. Vera Gács & Peter Huber, 2005. "Quantity adjustments in the regional labour markets of EU candidate countries," Papers in Regional Science, Wiley Blackwell, vol. 84(4), pages 553-574, November.
    17. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, November.
    18. Peter Huber, 2003. "Quantity Adjustments in Candidate Countries Regional Labour Markets," ERSA conference papers ersa03p239, European Regional Science Association.
    19. Smets, Frank & Beyer, Robert C. M., 2015. "Labour market adjustments in Europe and the US: How different?," Working Paper Series 1767, European Central Bank.
    20. Alexandre Janiak, 2008. "Mobility in Europe - Why it is low, the bottlenecks, and the policy solutions," European Economy - Economic Papers 2008 - 2015 340, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    21. Myriam Quispe-Agnoli & Madeline Zavodny, 2002. "The effect of immigration on output mix, capital, and productivity," Economic Review, Federal Reserve Bank of Atlanta, vol. 87(Q1), pages 17-27.
    22. Crescenzi, Riccardo & Luca, Davide & Milio, Simona, 2016. "The geography of the economic crisis in Europe: national macroeconomic conditions, regional structural factors and short-term economic performance," LSE Research Online Documents on Economics 64061, London School of Economics and Political Science, LSE Library.
    23. Lall, Somik V. & Selod, Harris & Shalizi, Zmarak, 2006. "Rural-urban migration in developing countries : a survey of theoretical predictions and empirical findings," Policy Research Working Paper Series 3915, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ondřej Schneider, 2022. "Labour Migration In The European Union: The Case Of Central And Eastern Europe," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 67(233), pages 7-38, April – J.

    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. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156, February.
    2. Michael Amior & Alan Manning, 2018. "The Persistence of Local Joblessness," American Economic Review, American Economic Association, vol. 108(7), pages 1942-1970, July.
    3. Timo Mitze, 2019. "The migration response to local labour market shocks: Evidence from EU regions during the global economic crisis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(2), pages 271-298, April.
    4. Julia Jauer & Thomas Liebig & John P. Martin & Patrick A. Puhani, 2019. "Migration as an adjustment mechanism in the crisis? A comparison of Europe and the United States 2006–2016," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 1-22, January.
    5. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    6. Mai Dao & Davide Furceri & Mr. Prakash Loungani, 2014. "Regional Labor Market Adjustments in the United States," IMF Working Papers 2014/211, International Monetary Fund.
    7. Smets, Frank & Beyer, Robert C. M., 2015. "Labour market adjustments in Europe and the US: How different?," Working Paper Series 1767, European Central Bank.
    8. Détang-Dessendre, Cécile & Partridge, Mark D. & Piguet, Virginie, 2016. "Local labor market flexibility in a perceived low migration country: The case of French labor markets," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 89-103.
    9. Adelheid Holl, 2018. "Local employment growth patterns and the Great Recession: The case of Spain," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 837-863, September.
    10. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Industrial relatedness and regional resilience in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 98(2), pages 755-778, April.
    11. Meiyue Li & Xiaowen Wang, 2022. "How Regions React to Economic Crisis: Regional Economic Resilience in a Chinese Perspective," SAGE Open, , vol. 12(4), pages 21582440221, December.
    12. Giuseppe Terzo, 2021. "Social capital, social economy and economic resilience of Italian provinces," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1113-1135, October.
    13. Fabio Mazzola & Pietro Pizzuto & Giovanni Ruggieri, 2022. "Tourism and territorial growth determinants in insular regions: A comparison with mainland regions for some European countries (2008–2019)," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1331-1382, December.
    14. Timothy J. Bartik, 2015. "How Effects of Local Labor Demand Shocks Vary with the Initial Local Unemployment Rate," Growth and Change, Wiley Blackwell, vol. 46(4), pages 529-557, December.
    15. Shu-hen Chiang, 2009. "The effects of regional diversity on national unemployment through inter-regional migration: new evidence from Taiwan," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2505-2511.
    16. Rios, Vicente & Gianmoena, Lisa, 2020. "The link between quality of government and regional resilience in Europe," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1064-1084.
    17. John Gardner & Joshua R. Hendrickson, 2018. "If I Leave Here Tomorrow: An Option View of Migration When Labor Market Quality Declines," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 786-814, January.
    18. 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.
    19. Linus Holtermann & Christian Hundt, 2018. "Hierarchically structured determinants and phase related patterns of economic resilience. An empirical case study for European regions," Working Papers on Innovation and Space 2018-02, Philipps University Marburg, Department of Geography.
    20. Mai Dao & Davide Furceri & Prakash Loungani, 2017. "Regional Labor Market Adjustment in the United States: Trend and Cycle," The Review of Economics and Statistics, MIT Press, vol. 99(2), pages 243-257, May.

    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:mup:actaun:actaun_2018066061497. 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: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    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.