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Labour mobility in the euro area: cure or curse?

Mar 11, 2016 | News

(11 March 2016) – Anna auf dem Brinke and Paul-Jasper Dittrich, from the Jacques Delors Institut – Berlin, look at the years following the crisis of 2008. Did labour mobility increase or decrease imbalances in the euro area?

© Kenneth Allen

The euro area has to address its imbalances and instability. Labour mobility in a currency union can be both a curse or a cure in this context.

When job seekers move from areas with high employment to regions with many vacancies, they act effectively as shock absorbers.

However, when young and better educated individuals move from structurally weak regions to dynamic ones, they can contribute to imbalances.

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