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Factor Mobility and Regional Disparities: East, West, Home's Best?

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Abstract

Unemployment rates as well as income per capita differ vastly across the regions of Europe. Labour mobility can play a role in resolving regional disparities. This paper focuses on the questions why labour mobility is low in the EU and how it is possible that it remains low. We explore whether changes in labour participation act as an important alternative adjustment mechanism. We answer this question in the affirmative. Furthermore, we argue that labour participation of young females is very important in adjusting to regional disparities. Finally, we examine whether part-time work is an adjustment mechanism that is comparable to labour force participation. It turns out not to be.

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Bibliographic Info

Paper provided by European Network of Economic Policy Research Institutes in its series Economics Working Papers with number 026.

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Length: 21 pages
Date of creation: Jan 2004
Date of revision:
Handle: RePEc:epr:enepwp:026

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Keywords: Labour mobility; labour participation; European Union;

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References

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  1. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers.
  2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  3. Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute for the Study of Labor (IZA).
  4. Ortega, Javier, 2000. "Pareto-Improving Immigration in an Economy with Equilibrium Unemployment," Economic Journal, Royal Economic Society, vol. 110(460), pages 92-112, January.
  5. Frankel, Jeffrey A. & Rose, Andrew K., 1997. "Is EMU more justifiable ex post than ex ante?," European Economic Review, Elsevier, vol. 41(3-5), pages 753-760, April.
  6. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
  7. Bauer, Thomas & Zimmermann, Klaus F, 1995. "Integrating the East: The Labour Market Effects of Immigration," CEPR Discussion Papers 1235, C.E.P.R. Discussion Papers.
  8. Bayoumi, Tamim & Eichengreen, Barry, 1992. "Shocking Aspects of European Monetary Unification," CEPR Discussion Papers 643, C.E.P.R. Discussion Papers.
  9. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-31, October.
  10. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  11. Michiel Van Leuvensteijn & Ashok Parikh, 2002. "How different are the determinants of population versus labour migration in Germany?," Applied Economics Letters, Taylor & Francis Journals, vol. 9(11), pages 699-703.
  12. repec:fth:eeccco:142 is not listed on IDEAS
  13. Klaus F. Zimmermann, 1995. "Tackling the European Migration Problems," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 45-62, Spring.
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Citations

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Cited by:
  1. Tani, Massimiliano & Manuguerra, Maurizio, 2013. "The Effect of Migration and Spatial Connectivity on Regional Skill Endowments across Europe: 1988-2010," IZA Discussion Papers 7292, Institute for the Study of Labor (IZA).
  2. Etzo, Ivan, 2007. "Determinants of interregional migration in Italy:A panel data analysis," MPRA Paper 5307, University Library of Munich, Germany.
  3. Bas Jacobs, 2002. "An investigation of education finance reform; graduate taxes and income contingent loans in the Netherlands," CPB Discussion Paper 9, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Etzo, Ivan, 2008. "Internal migration: a review of the literature," MPRA Paper 8783, University Library of Munich, Germany.
  5. Machiel van Dijk & Richard Nahuis & Daniël Waagmeester, 2005. "Does public service broadcasting serve the public? The future of television in the changing media landscape," CPB Discussion Paper 43, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Verikios, George, 2005. "A Model of the World Wool Market," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139293, Australian Agricultural and Resource Economics Society.
  7. Etzo, Ivan, 2008. "Internal migration and growth in Italy," MPRA Paper 8642, University Library of Munich, Germany.
  8. Wielandt, Hanna & Senftleben, Charlotte, 2012. "The Polarization of Employment in German Local Labor Markets," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62063, Verein für Socialpolitik / German Economic Association.
  9. 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.

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