GOLDEN GROWTH
for employment. Recent statistics show an increase in mobility. In 2008, about 2.3 percent of EU citizens (11.3 million people) resided in a member state other than their citizen state, according to the European Commission.24 That number has grown more than 40 percent since 2001. A lack of movement is often blamed for high unemployment rates in areas that lag and for labor shortages that drive up wages in places that lead. This negative correlation between mobility and unemployment is apparent in data from selected OECD countries for 1980 to 1995 (Hassler and others 2005; figure 6.30). Labor markets can respond differently to shocks, often resulting in differences in the impact on jobs across areas. Adjustment to regional shocks in Europe has been achieved more through unemployment rates and changes in labor force participation (people stop looking for work if a region goes into economic decay) and less through mobility of labor.25 By contrast, in the United States, labor mobility leads to greater agility in responding to differences in wages and job opportunities across states, reducing disparities in unemployment rates and real wages.
Table 6.3: Not a single market for new members (EU15 restrictions on workers from newer member states) Entry of workers from Bulgaria and Romaniaa
Entry of EU8 workers May 2004 to April 2006
May 2006 to April 2009
2007–08
Austria
Restricted
Restricted
Restricted
Belgium
Restricted
Restricted
Restricted
Denmark
Restricted
Restricted
Restricted
Finland
Restricted
Open
Open
France
Restricted
Restrictedb
Restrictedb
Germany
Restricted
Restricted
Restricted
Greece
Restricted
Open
Restricted
Ireland
Open
Open
Restricted
Italy
Restricted
Openc
Restrictedd
Luxembourg
Restricted
Restricted
Restricted
Netherlands
Restricted
Opene
Restricted
Portugal
Restricted
Open
Restricted
Spain
Restricted
Open
Restricted
Sweden
Open
Open
Open
United Kingdom
Open
Open
Restricted
a. Bulgarian and Romanian workers also face restrictions in Hungary and Malta. b. Except for health care, transport, construction, hotels, and catering. c. Since July 2006. d. Procedures for obtaining work permits are simplified in certain sectors. e. Since May 2007. Between May 2006 and April 2007, the Dutch labor market was open to EU8 workers in a large number of sectors. Source: OECD 2007.
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