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Labor Market Laws and Intra-European Migration: The Role of the State in Shaping Destination Choices

Author

Listed:
  • John Palmer

    (Princeton University)

  • Mariola Pytlikova

    (Danish Institute of Governmental Research (KORA) and CReAM London)

Abstract

This article investigates the relationship between migrants' destination choices and the formal labor market access a fforded by multiple potential host countries in the context of the EU's eastward enlargement. We use an index of labor market access laws combined with data on migration from new EU member states into the existing states of the EU and EFTA from 2004 through 2010 to test whether (1) migrants are attracted to destinations that give them greater formal labor market access, and (2) migration flows to any given destination are influenced by the labor market policies of competing destinations. Our data support both propositions: Migration between origin/destination pairs was positively associated with the loosening of destination labor market restrictions while negatively associated with the loosening of competing destinations' labor market restrictions. These relationships hold even when economic indicators, social welfare spending, and existing immigrant stocks are modeled. By combining rich EU data with a unique approach to evaluating competing legal regimes, the analysis helps us better understand how law shapes migration in a multidestination world.

Suggested Citation

  • John Palmer & Mariola Pytlikova, 2013. "Labor Market Laws and Intra-European Migration: The Role of the State in Shaping Destination Choices," Norface Discussion Paper Series 2013015, Norface Research Programme on Migration, Department of Economics, University College London.
    • Handle: RePEc:nor:wpaper:2013015
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    2. Stella Capuano & Silvia Migali, 2017. "The migration of professionals within the EU: Any barriers left?," Review of International Economics, Wiley Blackwell, vol. 25(4), pages 760-773, September.
    3. Elvira Nica, 2015. "Labor Market Determinants of Migration Flows in Europe," Sustainability, MDPI, vol. 7(1), pages 1-14, January.
    4. Chakrabarti, Anindya S. & Dutta, Aparna, 2015. "Economic incentives versus institutional frictions: migration dynamics within Europe," IIMA Working Papers WP2015-08-06, Indian Institute of Management Ahmedabad, Research and Publication Department.

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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