Working Paper: CEPR ID: DP16120
Authors: David Dorn; Josef Zweimüller
Abstract: The European labor market allows for the border-free mobility of workers across 31 countries that cover most of the continent’s population. However, rates of migration across European countries remain considerably lower than interstate migration in the United States, and spatial variation in terms of unemployment or income levels is larger. We document patterns of migration in Europe, which include a sizable migration from east to west in the last twenty years. An analysis of worker-level microdata provides some evidence for an international convergence in wage rates, and for modest static gains from migration. We conclude by discussing obstacles to migration that reduce the potential for further labor market integration in Europe.
Keywords: Labor Migration; Wages; Europe; European Union; Single Market
JEL Codes: F22; F53; J31; J61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| migration from Eastern to Western Europe (F22) | wage convergence (J31) |
| removal of legal barriers to migration (F22) | economic benefits (D61) |
| migration (F22) | increased employment opportunities (J68) |
| migration (F22) | wage adjustments (J31) |
| intra-EU migrants (F22) | earnings increases (J31) |
| skill level of migrants (J61) | wage outcomes (J31) |
| economic conditions of the destination country (F29) | wage outcomes (J31) |
| educational attainment (I21) | extent of earnings gains (J31) |
| country of origin (O57) | extent of earnings gains (J31) |