Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251747 
Year of Publication: 
2022
Series/Report no.: 
Research Paper No. 20
Publisher: 
EcoAustria - Institute for Economic Research, Vienna
Abstract: 
Labour market developments in the Euro area diverged significantly since 2008. Economic literature frequently refers to labour mobility as pillar for the functioning of currency areas. Applying the CGE model PuMA, we quantitatively analyse to what extent labour mobility can contribute to reducing imbalances within the Euro area. Our results indicate that it can temporarily reduce unemployment and increase wages in periphery countries at the cost of somewhat higher unemployment in receiving countries. Overall, economic outcomes improve slightly. Although labour mobility has a positive effect on labour market imbalances, it cannot be seen as substitute for structural reforms.
Subjects: 
international migration
wage level and structure
unemployment
general equilibrium models
Euro area
JEL: 
F22
D58
J11
J31
J61
J64
Document Type: 
Working Paper

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