Migration and Labor Market Integration in Europe

33 Pages Posted: 24 Jul 2021

See all articles by David Dorn

David Dorn

University of Zurich - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Josef Zweimüller

University of Zurich

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Abstract

The European labor market allows for the border-free mobility of workers across 31 countries that cover most of the continent's population. However, rates of migration across European countries remain considerably lower than interstate migration in the United States, and spatial variation in terms of unemployment or income levels is larger. We document patterns of migration in Europe, which include a sizable migration from east to west in the last twenty years. An analysis of worker-level microdata provides some evidence for an international convergence in wage rates, and for modest static gains from migration. We conclude by discussing obstacles to migration that reduce the potential for further labor market integration in Europe.

JEL Classification: F22, F53, J31, J61

Suggested Citation

Dorn, David and Zweimüller, Josef, Migration and Labor Market Integration in Europe. IZA Discussion Paper No. 14538, Available at SSRN: https://ssrn.com/abstract=3892566 or http://dx.doi.org/10.2139/ssrn.3892566

David Dorn (Contact Author)

University of Zurich - Department of Economics ( email )

Zürich
Switzerland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Josef Zweimüller

University of Zurich

Rämistrasse 71
Zürich, CH-8006
Switzerland

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