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Investment opportunities and labor mobility: Evidence from Europe

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  • Peterburgsky, Stanley

Abstract

We study the relationship between country-level investment opportunities and international labor mobility in Europe. Based on a gravity model analogous to those frequently utilized in the international trade literature, we find that (1) migration is not sensitive to investment opportunities at home and (2) individuals who migrate are more likely to move to countries with higher investment opportunities. As such, country-level investment opportunities appear to cause a reallocation of human capital supply internationally. The results are largely robust to alternative proxies for investment opportunities and to delays in labor market adjustment. Our findings should be of interest to corporations seeking talent and policy makers responsible for immigration regulations.

Suggested Citation

  • Peterburgsky, Stanley, 2025. "Investment opportunities and labor mobility: Evidence from Europe," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008293
    DOI: 10.1016/j.frl.2025.107570
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    Keywords

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    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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