The Effect of Regulatory Harmonization on Cross‐Border Labor Migration: Evidence from the Accounting Profession

Matthew J. Bloomfield, Ulf Brüggemann, Hans B. Christensen and Christian Leuz

Journal of Accounting Research, 2017, vol. 55, issue 1, 35-78

Abstract: The paper examines whether international regulatory harmonization increases cross‐border labor migration. To study this question, we analyze European Union initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers, essentially making it easier for accounting professionals to move across countries. Our research design compares the cross‐border migration of accounting professionals relative to tightly matched other professionals before and after regulatory harmonization. We find that international labor migration in the accounting profession increases significantly relative to other professions. We provide evidence that this effect is due to harmonization, rather than increases in the demand for accounting services during the implementation of the rule changes. The findings illustrate that diversity in rules constitutes an economic barrier to cross‐border labor mobility and, more specifically, that accounting harmonization can have a meaningful effect on cross‐border migration.

Date: 2017
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Citations: View citations in EconPapers (6)

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https://doi.org/10.1111/1475-679X.12155

Related works:
Working Paper: The Effect of Regulatory Harmonization on Cross-border Labor Migration: Evidence from the Accounting Profession (2015)
Working Paper: The Effect of Regulatory Harmonization on Cross-border Labor Migration: Evidence from the Accounting Profession (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:joares:v:55:y:2017:i:1:p:35-78

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Journal of Accounting Research is currently edited by Philip G. Berger, Luzi Hail, Christian Leuz, Haresh Sapra, Douglas J. Skinner, Rodrigo Verdi and Regina Wittenberg Moerman

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