Recently migration patterns in the euro area changed markedly in response to increasing unemployment disparities. This reinforced the interest in labor mobility as stabilization tool against the background of heterogeneous labor market conditions. In a data set of 55 bilateral migration...

The Eurozone crisis has sparked renewed interest in the literature about optimum currency areas, in particular in the role of labor mobility as a mechanism of adjustment to shocks. We study the response of mobility in the Eurozone to national labor market conditions. We measure mobility by using...

Immigrants’ higher responsiveness to regional differences in labor market conditions has long been recognized as a potentially important adjustment mechanism to labor market shocks such as the European debt crisis from 2010 onwards. Using household- level data for the Euro Area from 2007 to...

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...

We analyze the role of labor mobility in cushioning labor demand shocks in the Euro Area. We find that foreign-born workers' mobility is strongly cyclical, while this is not the case for natives. Foreigners' higher population to employment elasticity reduces the variation in overall employment...

The purpose of this paper is to evaluate whether labor mobility is likely to act as a sufficient adjustment mechanism in the face of asymmetric shocks in Euroland. To this end, we estimate the elasticity of migration with respect to changes in unemployment and income on the basis of regional...