Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/169286
Authors: 
Arpaia, Alfonso
Kiss, Aron
Palvolgyi, Balazs
Turrini, Alessandro
Year of Publication: 
2016
Citation: 
[Journal:] IZA Journal of Migration [ISSN:] 2193-9039 [Volume:] 5 [Year:] 2016 [Issue:] 21 [Pages:] 1-21
Abstract: 
This paper assesses the role of labour mobility in the adjustment to asymmetric economic shocks in the EU. After presenting a series of stylised facts of mobility in the EU, it assesses mobility as a channel of economic adjustment by means of a vector autoregression (VAR) analysis in the vein of Blanchard and Katz (BPEA 1:1-75, 1992). Results indicate that, over the period 1970-2013, mobility absorbed about a quarter of an asymmetric shock within 1 year. Movements in response to shocks have almost doubled since the introduction of the euro. In contrast to previous papers on the labour market adjustment in the EU, the response of wages is integrated to the analysis. It is found that real wages have also become more responsive to asymmetric shocks.
Subjects: 
Labour mobility
Geographic mobility
Migration
Adjustment
Asymmetric shocks
Optimal currency areas
European Union
JEL: 
J61
J64
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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