Investment opportunities and labor mobility: Evidence from Europe

Stanley Peterburgsky

Finance Research Letters, 2025, vol. 82, issue C

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.

Keywords: Investment opportunities; Labor mobility; Migration (search for similar items in EconPapers)
JEL-codes: G15 G30 J61 O40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008293

DOI: 10.1016/j.frl.2025.107570

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