Labour mobility - an adjustment mechanism in Euroland? Empirical evidence for Western Germany, France and Italy

Patrick Puhani

No 99-47, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The purpose of this paper is to evaluate whether labour mobility is likely to act as a sufficient adjustment mechanism in the face of asymmetric shocks in Euroland. To this end, we estimate the elasticity of migration with respect to changes in unemployment and income on the basis of regional panel data provided by Eurostat, the statistical office of the European Union. Regression results are provided for Western Germany, France, and Italy. It is shown that labour mobility is highest in Germany, followed by France, and Italy. However, even in Germany, the accommodation of a shock to unemployment by migration takes several years. We conclude that labour mobility is extremely unlikely to act as a sufficient adjustment mechanism to asymmetric shocks in Euroland.

Keywords: European Monetary Union (EMU); euro; labour mobility (search for similar items in EconPapers)
JEL-codes: E66 J61 P52 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (16)

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Journal Article: Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy (2001)
Journal Article: Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5260

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