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Labor Market Conditions and Geographic Mobility in the Eurozone

  • Florence Huart
  • Médédé Tchakpalla
Article
  • 9 Downloads

Abstract

The Eurozone crisis has sparked renewed interest in the literature about optimum currency areas, in particular in the role of labor mobility as a mechanism of adjustment to shocks. We study the response of mobility in the Eurozone to national labor market conditions. We measure mobility by using data on stocks of foreign population by nationality. We find that mobility in the Eurozone is relatively low. It responded to national differences in unemployment during the crisis, but neither to national differences in wages nor to national differences in GDP per capita.

Keywords

Optimum currency areas Labor mobility European monetary union 

JEL Classification

F45 F66 F22 

Notes

Acknowledgements

We are grateful to Alberto Bagnai, Paul Wachtel, the journal’s co-editor, three anonymous referees, Andreea Stoian, Cécile Couharde, Etienne Farvaque, participants at the INFER Conference (Bordeaux, 2017), and participants at the GdRE Conference (Paris, 2017), for useful suggestions. This work is part of a research contract (PACaPe) headed by Xavier Chojnicki (LEM-CNRS, University of Lille), and as such, it has benefited from the financial support of the Directorate General for Foreigners in France (DGEF) of the Ministry of the Interior.

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Copyright information

© Association for Comparative Economic Studies 2018

Authors and Affiliations

  1. 1.LEM-CNRSUniversité de Lille, Cité scientifique (SH2)Villeneuve d’Ascq CedexFrance

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