The Impact of Labor Mobility on Economic and Monetary Union of The EU
School of Business | Bachelor's thesis
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(Mikkeli) Bachelor’s Program in International Business
AbstractObjectives The main objectives of this study were to acquire an understanding of the role labor mobility has on the Eurozone’s economy as a whole. It aims to assess, whether the movement of labor could have a significant impact on the longevity of the EMU and prevention of a slow recovery from an asymmetric economic shock on the Eurozone. Additionally, his work examines, what has and can be done to lower the barriers to labor mobility in the Eurozone. Summary The free movement of labor is a cornerstone of the Eurozone as it offers significant benefits to the EU as a whole. The economy of the Eurozone has recently proven to be asymmetric, and thus vulnerable to economic shocks. Yet, labor mobility has shown to function as a stabilizer of asymmetric economic shocks. The impact that labor mobility has on the EMU is researched through 1) a literature review, 2) conducting a case study comparing the trends of labor mobility in two member states of the Eurozone, Germany and Spain, with differentiating national economies, and 3) interviewing four EU labor mobility experts from three different member states of the EU. Conclusions The impact of labor mobility on the Eurozone’s economy and the EMU’s longevity is remarkable, although slight due to its modest extent. Yet, labor mobility has been on an upward trend in the EU and thus, the future volume is expected to increase. Lowering the administrative and cultural barriers should be encouraged through further integration and economic convergence.
Thesis advisorBuckley, Rita
EU, Eurozone, EMU, labor mobility, Eurozone crisis, asymmetric economic shock, labor economics, macroeconomics