The EU's Internal Market and the Free Movement of Labor

Author(s):  
Zeynep Kaplan

Free mobility of labor has been the core element of the European integration process. The aim of this chapter is to analyze the effects and challenges of the labor mobility within the EU. The analysis then focuses on the recent trends in labor mobility. Cross-border labor mobility remains low in the EU. The main reasons behind the low levels of labor mobility in the EU include linguistic and cultural reasons, as well as non-tariff barriers such as pension rules, recognition of professional qualification or social security differences. Removal of impediments to free mobility of labor and improvement of flexibility of the European labor markets will strengthen the EU's labor market integration.

2011 ◽  
Vol 3 (4) ◽  
pp. 53-84 ◽  
Author(s):  
Prachi Mishra ◽  
Antonio Spilimbergo

We analyze how the pass-through from exchange rate to domestic wages depends on the degree of integration between domestic and foreign labor markets. Using data from 66 countries over the period 1981–2005, we find that the elasticity of domestic wages to real exchange rate is 0.15 after a year for countries with high barriers to external labor mobility, but about 0.40 in countries with low barriers to mobility. The result is robust to the inclusion of various controls, different measures of exchange rates, and definitions of labor market integration. These findings call for including labor mobility in macro models of external adjustment. (JEL F16, F31, J31)


Author(s):  
Rolle Alho

The article analyzes how 31 international students (IS) entered the Finnish labor market as they graduated from Finnish universities. Despite a growing interest in international student migration (ISM), there are few studies that analyze the firsthand experiences of IS as they seek to enter the receiving-country labor markets as they graduate. This article contributes to the topic by showing how the interviewees of this study managed to enter the receiving-country labor markets, which are embedded in national, cultural, and institutional contexts that require context-bound knowledge of particular recruitment patterns.The contribution of the article lies in (1) providing new insights on an understudied topic: IS’ experiences of finding jobs in the country of graduation, and, in (2) constructing a theoretical framework for analyzing IS’ job search in the countries ofgraduation. More broadly, the article contributes to the studies on highly educated migrants’ labor market integration by shedding light on the experiences in a Nordic setting.


2018 ◽  
pp. 419-442
Author(s):  
Thees F. Spreckelsen ◽  
Janine Leschke ◽  
Martin Seeleib-Kaiser

This chapter examines the labor market integration of recent migrant youth from Central and Eastern Europe (EU8) countries, Bulgaria and Romania (EU2), Southern Europe, and the remaining European Union in the German and UK labor markets. The chapter measures levels of employment, income, marginal employment, fixed-term employment, (solo) self-employment, and the skills/qualification mismatch of each group compared to nationals before and after the financial crisis. Despite institutional differences, young EU citizens are well integrated into the respective labor markets (especially in the United Kingdom) in terms of employment rates. However, EU youth migrants’ qualitative labor market integration seems to mirror the existing stratification across regions of Europe: EU8 and EU2 citizens often work in precarious and nonstandard employment, youth from Southern Europe take a middle position, and youth from the remaining EU countries do as well or better on several indicators compared to their native peers.


1998 ◽  
Vol 12 (4) ◽  
pp. 51-72 ◽  
Author(s):  
Jeffrey G Williamson

The late nineteenth and twentieth centuries have many things in common. Both periods recorded fast growth, convergence, and labor-market integration between OECD members. Both periods witnessed intense debate about who gained and who lost from globalization. Furthermore, the earlier period saw a retreat from global liberalism long before the interwar deglobalization disaster. Did globalization of that time plant seeds of its own destruction? Are there lessons for the present?


2020 ◽  
Vol 34 (1) ◽  
pp. 94-121 ◽  
Author(s):  
Courtney Brell ◽  
Christian Dustmann ◽  
Ian Preston

We provide an overview of the integration of refugees into the labor markets of a number of high-income countries. Discussing the ways in which refugees and economic migrants are differently selected and so might be expected to perform differently in a host country’s labor market, we examine employment and wages for these groups over time after arrival. There is significant heterogeneity between host countries, but in general, refugees experience persistently worse outcomes than other migrants. While the gaps between the groups can be seen to decrease on a timescale of a decade or two, this is more pronounced in employment rates than it is in wages. We also discuss how refugees are distinct in terms of other factors affecting integration, including health, language skills, and social networks. We provide a discussion of insights for public policy in receiving countries, concluding that supporting refugees in early labor market attachment is crucial.


2016 ◽  
Vol 23 (6) ◽  
pp. 937-964 ◽  
Author(s):  
Roger Van den Bergh

Following the Brexit vote, the European Union (EU) is experiencing a deep institutional crisis. The economic theory of federalism may explain the causes of this crisis and suggest ways to overcome it. The core of the problem is that the EU has taken action in areas where it would have been preferable to leave the initiative to the Member States and that it has neglected to act in fields where the central level enjoys a comparative advantage compared to lower levels of government. The paper presents the economic criteria that may be used to decide the appropriate level of decision-making in a (quasi) federal union. It argues that political distortions have inhibited the use of these arguments and have consequently led to the current institutional crisis. Both market integration and the monetary union have become a goal in itself and are no longer connected to the original ambition of the Treaty to increase social welfare and guarantee a peaceful coexistence between the Member States. This article suggests a deregulation of market integration legislation and a reform of the Euro system, which are in conformity with the basic lessons of the economics of federalism.


2017 ◽  
Vol 38 (7) ◽  
pp. 954-974 ◽  
Author(s):  
Annabelle Krause ◽  
Ulf Rinne ◽  
Klaus F. Zimmermann

Purpose The purpose of this paper is to investigate the current state of the single European labor market (SELM), its related risks and opportunities, and identify useful measures for reaching the goal of increased European labor mobility. Design/methodology/approach The authors conducted an online survey among European labor market experts (IZA research and policy fellows) on the current state of the SELM, its determinants, and the role of the Great Recession. The authors evaluate the data using descriptive and regression-based methods. Findings The experts agree on the SELM’s importance, especially for larger economic welfare, but are not convinced that it has been achieved. To enhance labor mobility across Europe, the respondents identify key factors such as recognizing professional qualifications more efficiently, harmonizing social security systems, and knowing several languages. Moreover, at least 50 percent of the respondents consider positive attitudes – by policy makers and citizens alike – toward free mobility to be important to enhance labor mobility. Originality/value The IZA Expert Opinion Survey presents a unique opportunity to learn how numerous experts think about the important issue of European labor market integration and moreover constitutes a valuable extension to public opinion surveys on related topics. This survey’s findings provide a sophisticated basis for a discussion about policy options regarding the SELM.


1990 ◽  
Vol 50 (1) ◽  
pp. 85-107 ◽  
Author(s):  
Joshua L. Rosenbloom

This article examines the geographic integration of U.S. labor markets from 1870 to 1898, using previously unexploited wage and price data for 23 occupations in 12 major cities. In contrast to the increasing nationalization found in other markets at that time, the labor market was characterized by large and persistent real wage differentials both within and between regions, leaving little doubt that late nineteenth-century labor markets remained far from completely integrated. The differentials, however, owed as much to substantial variations in labor demand growth as to the lack of labor market integration.


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