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Regional Labour Mobility in the European Union: Adjustment Mechanism or Disturbance?

  • Paul Cavelaars
  • Jeroen Hessel

We analyse the role of labour mobility as a mechanism for regional adjustment in Europe. We find that only a small share of migration can be explained by economic differences. Moreover, despite European integration and structural reforms, the role of labour migration in regional adjustment has not increased since the late 1980s. We conclude that regional migration in Europe currently acts as a source of disturbances rather than an adjustment mechanism.

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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 137.

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Date of creation: Apr 2007
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Handle: RePEc:dnb:dnbwpp:137
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Web page: http://www.dnb.nl/en/

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  1. Maurice Obstfeld & Giovanni Peri, 1998. "Regional non-adjustment and fiscal policy," Economic Policy, CEPR;CES;MSH, vol. 13(26), pages 205-259, 04.
  2. Bentolila, Samuel, 1997. "Sticky labor in Spanish regions," European Economic Review, Elsevier, vol. 41(3-5), pages 591-598, April.
  3. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
  4. Peter Huber, 2004. "Inter-regional Mobility in Europe. A Note on the Cross-Country Evidence," WIFO Working Papers 221, WIFO.
  5. Eswar Prasad & Tamim Bayoumi, 1996. "Currency Unions, Economic Fluctuations, and Adjustment; Some New Empirical Evidence," IMF Working Papers 96/81, International Monetary Fund.
  6. Rappaport, Jordan, 2004. "Why are population flows so persistent?," Journal of Urban Economics, Elsevier, vol. 56(3), pages 554-580, November.
  7. 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.
  8. Chiara Bentivogli & Patrizio Pagano, 1999. "Regional Disparities and Labour Mobility: the Euro-11 versus the USA," LABOUR, CEIS, vol. 13(3), pages 737-760, 09.
  9. Pesaran, M.H., 2003. "A Simple Panel Unit Root Test in the Presence of Cross Section Dependence," Cambridge Working Papers in Economics 0346, Faculty of Economics, University of Cambridge.
  10. Eichengreen, Barry, 1993. "European Monetary Unification," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1321-57, September.
  11. J. Lloyd Blackwell, III, 2005. "Estimation and testing of fixed-effect panel-data systems," Stata Journal, StataCorp LP, vol. 5(2), pages 202-207, June.
  12. Hess, Gregory D & Shin, Kwanho, 1997. "International and Intranational Business Cycles," Oxford Review of Economic Policy, Oxford University Press, vol. 13(3), pages 93-109, Autumn.
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