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Discussion

Published online by Cambridge University Press:  24 February 2010

Richard Baldwin
Affiliation:
Graduate Institute of International Studies, Geneva
Daniel Cohen
Affiliation:
Université de Paris I
Andre Sapir
Affiliation:
Université Libre de Bruxelles
Anthony Venables
Affiliation:
London School of Economics and Political Science
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Summary

Riccardo Faini has given us a very nice survey/synthesis piece on European migration in his chapter 8. If I may be so bold as to summarise it, Faini's chapter essentially tells us that European labour does not move – not between nations, not within nations and certainly not in response to wage differentials – as many economists would expect. Why does it not move? Faini evaluates and dismisses four popular explanations. The immobility is not due to a narrowing of the wage gap, it is not due to international regulation or subtle international regulatory barriers, it is not due to demographics and it is not due to changes in the gaps between unemployment rates. The real answer lies in four assertions. First, as the level of incomes has risen, European workers wish to consume more ‘home amenities’ – i.e. the ability to enjoy one's consumption near one's friends and family. Second, employment agencies have done a poor job of advertising job openings beyond the boundaries of their regional and national boundaries. Third, obstructionist housing market policies have greatly increased the cost of moving. Lastly, unemployment support has made it feasible for workers to survive without jobs.

I am not a migration specialist, so I cannot make clever points about his arguments, data and/or empirics. What I will do instead is attempt to draw some conclusions from Faini's findings. The first is to question the desirability of boosting European labour mobility. As a migrant myself, and citizen of a highly mobile society (the United States), I find the lack of European mobility a social plus.

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Publisher: Cambridge University Press
Print publication year: 1999

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  • Discussion
  • Edited by Richard Baldwin, Graduate Institute of International Studies, Geneva, Daniel Cohen, Université de Paris I, Andre Sapir, Université Libre de Bruxelles, Anthony Venables, London School of Economics and Political Science
  • Book: Market Integration, Regionalism and the Global Economy
  • Online publication: 24 February 2010
  • Chapter DOI: https://doi.org/10.1017/CBO9780511599118.017
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  • Discussion
  • Edited by Richard Baldwin, Graduate Institute of International Studies, Geneva, Daniel Cohen, Université de Paris I, Andre Sapir, Université Libre de Bruxelles, Anthony Venables, London School of Economics and Political Science
  • Book: Market Integration, Regionalism and the Global Economy
  • Online publication: 24 February 2010
  • Chapter DOI: https://doi.org/10.1017/CBO9780511599118.017
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Discussion
  • Edited by Richard Baldwin, Graduate Institute of International Studies, Geneva, Daniel Cohen, Université de Paris I, Andre Sapir, Université Libre de Bruxelles, Anthony Venables, London School of Economics and Political Science
  • Book: Market Integration, Regionalism and the Global Economy
  • Online publication: 24 February 2010
  • Chapter DOI: https://doi.org/10.1017/CBO9780511599118.017
Available formats
×