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Labour market integration and associated issues: Kipling is wrong

In: Boosting European Competitiveness

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  • Peter Sinclair

Abstract

Eleven Central, Eastern and South-Eastern European (CESEE) countries have joined the European Union (EU). Five later adopted the euro. Most of the 11, and particularly its largest, Poland, have witnessed reasonably robust economic growth. Wage gaps against non-CESEE EU countries have narrowed. Yet as a whole the euro zone, despite a large employment gain by Germany with its large immigration and increased external competitiveness, lost 5 million jobs in total between 2008 and 2014. In the rest of the EU, overall employment rose. The variance of intra-euro zone unemployment rates exploded. The adverse developments in the euro zone’s beleaguered southern countries warn against both fiscal integration and, at times of strain, unrestricted intra-EU capital movements.

Suggested Citation

  • Peter Sinclair, 2016. "Labour market integration and associated issues: Kipling is wrong," Chapters, in: Marek Belka & Ewald Nowotny & Pawel Samecki & Doris Ritzberger-Grünwald (ed.), Boosting European Competitiveness, chapter 10, pages 113-132, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17217_10
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    Keywords

    Economics and Finance;

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