An analysis of regional commuting flows in the European Union

Regional labour mobility is of increasing concern in the context of the Single European Monetary Policy, as EMU implies a reduction of national policy options. Thus, it is important that the remaining adjustment mechanisms function effectively. While most of the empirical literature focuses on labour mobility in terms of migration, this paper provides an empirical assessment of the determinants of aggregate regional commuting flows in the EU, an issue often examined in a local or national context but still un(der)explored on EU level. Using an extended gravity framework, commuting is found to respond to differences in regional wages and unemployment, and to provide an equilibrating mechanism to labour market disequilibria. Higher levels of education and labour force participation of women, as well as a larger services sector are associated with a higher percentage of commuting. Finally, the results reveal interesting geographical differences between internal, border and coastal regions.