Labor markets and labor mobility in the French-German border region

This paper examines the cross-border labor market in the French-German Upper Rhine Region. Based on shortage analyses conducted for both sides of the border, a fixed effects panel regression estimates the impact of changing labor market situations on the number of French frontier workers. Although some of the anticipated effects are detected, their size is rather modest and insufficient to balance regional disparities in a way that would be expected in a fully integrated cross-border labor market. By the same token, the quantitative analysis identifies standardized certificates as a barrier to cross-border mobility and confirms a preference of frontier workers for routine tasks. In addition, insufficient public transportation and language skills, missing information about the neighboring country as well as problems with the recognition of degrees are also found among the obstacles to an integrated labor market.