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Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy

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  • Patrick A. Puhani

Abstract

We evaluate whether labour mobility is likely to act as a sufficient adjustment mechanism in the face of asymmetric shocks in Euroland. As no adequate data on cross‐border migration are available, migration elasticities within nation states (Western Germany, France and Italy) are estimated and interpreted as upper bounds for cross‐border migration elasticities between European nation states. Labour mobility is highest in Germany, followed by France and Italy. However, the accommodation of a shock to unemployment by migration takes several years. We conclude that labour mobility is unlikely to act as a sufficient adjustment mechanism to asymmetric shocks in Euroland.

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  • 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.
  • Handle: RePEc:bla:germec:v:2:y:2001:i:2:p:127-140
    DOI: 10.1111/1468-0475.00031
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    More about this item

    JEL classification:

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

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