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IZA
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European Labour Mobility: Challenges and Potentials
by
Klaus F. Zimmermann
(November 2004)
published in: De Economist, 2005, 153 (4), 425-450
Abstract:
European Union economies are pressed by (i) a demographic change that induces
population ageing and a decline of the workforce, and (ii) a split labour market that is
characterized by high levels of unemployment for low-skilled people and a simultaneous
shortage of skilled workers. This lack of flexible high-skilled workers and the ageing process
has created the image of an immobile labour force and the eurosklerosis phenomenon. In
such a situation, an economically motivated immigration policy at the European level can
generate welfare improvements. A selective policy that discourages unskilled migrants and
attracts skilled foreign workers will vitalize the labour market, foster growth and increase
demand for unskilled native workers. The paper summarizes the available economic insights,
and suggests (i) the need to harmonize the single-country migration policies across Europe
and (ii) that the European Union needs to become an active player on the international labour
markets.
Text: See Discussion Paper No. 1410 
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