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

Author

Listed:
  • Paul Cavelaars
  • Jeroen Hessel

Abstract

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.

Suggested Citation

  • Paul Cavelaars & Jeroen Hessel, 2007. "Regional Labour Mobility in the European Union: Adjustment Mechanism or Disturbance?," DNB Working Papers 137, Netherlands Central Bank, Research Department.
  • Handle: RePEc:dnb:dnbwpp:137
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    File URL: https://www.dnb.nl/binaries/Working%20Paper%20137-2007_tcm46-146794.pdf
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    References listed on IDEAS

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    1. Eichengreen, Barry, 1993. "European Monetary Unification," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1321-1357, September.
    2. Bentolila, Samuel, 1997. "Sticky labor in Spanish regions," European Economic Review, Elsevier, vol. 41(3-5), pages 591-598, April.
    3. Rappaport, Jordan, 2004. "Why are population flows so persistent?," Journal of Urban Economics, Elsevier, vol. 56(3), pages 554-580, November.
    4. Peter Huber, 2004. "Inter-regional mobility in Europe: a note on the cross-country evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 619-624.
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    6. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    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. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-755, September.
    9. Chiara Bentivogli & Patrizio Pagano, 1999. "Regional Disparities and Labour Mobility: the Euro-11 versus the USA," LABOUR, CEIS, vol. 13(3), pages 737-760, September.
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    11. Tamim Bayoumi & Eswar Prasad, 1997. "Currency Unions, Economic Fluctuations, and Adjustment: Some New Empirical Evidence," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 36-58, March.
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    Citations

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    Cited by:

    1. Tyrowicz, Joanna, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," MPRA Paper 15045, University Library of Munich, Germany.
    2. Marga Peeters, 2012. "Better Safe than Sorry - Individual Risk-free Pension Schemes in the European Union," Contemporary Economics, University of Finance and Management in Warsaw, vol. 6(3), September.
    3. Peeters, Marga, 2011. "“Better Safe than Sorry” - Individual Risk-free Pension Schemes in the European Union - Macroeconomic Benefits, the Mobile Working Citizen’s Perspective and Why Nots," MPRA Paper 33571, University Library of Munich, Germany.
    4. Cristina Puiu, 2011. "Labour Mobility As An Adjustment Mechanism In The Euro Area," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3(4), pages 579-591, December.

    More about this item

    Keywords

    labour mobility.;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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