Is Job Stability in the United States Falling?

46 Pages Posted: 27 May 1999

See all articles by David A. Jaeger

David A. Jaeger

Ph.D. Program in Economics, City University of New York Graduate Center; National Bureau of Economic Research (NBER); University of Cologne - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); University College London - CReAM - Centre for Research and Analysis of Migration

Ann Huff Stevens

University of California, Davis - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 1999

Abstract

The purpose of this paper is to evaluate whether labour 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 panel data provided by Eurostat, the statistical office of the European Union. Regression results are provided for Western Germany, France, and Italy. It is shown that labour mobility is highest in Germany, followed by France, and Italy. However, even in Germany, the accommodation of a shock to unemployment by migration takes several years. We conclude that labour mobility is extremely unlikely to act as a sufficient adjustment mechanism to asymmetric shocks in Euroland.

JEL Classification: J23, J63

Suggested Citation

Jaeger, David A. and Stevens, Ann, Is Job Stability in the United States Falling? (March 1999). IZA Discussion Paper No.35. Available at SSRN: https://ssrn.com/abstract=166353

David A. Jaeger (Contact Author)

Ph.D. Program in Economics, City University of New York Graduate Center ( email )

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Ann Stevens

University of California, Davis - Department of Economics ( email )

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