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Geographic Mobility in the European Union: Optimising Its Social and Economic Benefits

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Geographic Mobility in the European Union: Optimising Its Social and Economic Benefits IZA Research Report No. 19 Geographic Mobility in the European Union: Optimising its Economic and Social Benefits Holger Bonin (IZA) Jan Stuhler (IZA) Werner Eichhorst (IZA) Konstantinos Tatsiramos (IZA) Christer Florman (AMS) Henrik Thomasen (NIRAS) Mette Okkels Hansen (NIRAS) Klaus F. Zimmermann (IZA) Lena Skiöld (AMS) RESEARCH REPORT SERIES July 2008 IZA Research Report No. 19 Geographic Mobility in the European Union: Optimising its Social and Economic Benefits AUTHORS Holger Bonin (IZA) Werner Eichhorst (IZA) Christer Florman (AMS) Mette Okkels Hansen (NIRAS) Lena Skiöld (AMS) Jan Stuhler (IZA) Konstantinos Tatsiramos (IZA) Henrik Thomasen (NIRAS) Klaus F. Zimmermann (IZA) IZA, NIRAS Consultants, AMS i IZA Research Report No. 19 Geographic Mobility in the European Union: Optimising its Social and Economic Benefits CONTENTS EXECUTIVE SUMMARY...................................................................................................... 1 1. INTRODUCTION.......................................................................................................... 11 2. CURRENT STATE OF GEOGRAPHIC MOBILITY IN EUROPE........................ 14 2.1 Introduction and Data Overview.......................................................................... 14 2.2 Stocks of Migrant Populations............................................................................. 16 2.3 Geographic Mobility Rates.................................................................................. 25 2.4 Cross-Border Mobility over the Past Decade ...................................................... 30 2.5 Lifetime Mobility................................................................................................. 32 2.6 Mobility Intentions............................................................................................... 42 2.7 Concluding Remarks............................................................................................ 49 3. OPTIMUM MOBILITY................................................................................................ 50 3.1 Introduction.......................................................................................................... 50 3.2 Social Benefits and Costs of Migration ............................................................... 51 3.2.1 The Role of Externalities........................................................................ 51 3.2.2 Economic Factors................................................................................... 52 3.2.3 Demographic Factors ............................................................................. 61 3.2.4 Social Factors ......................................................................................... 64 3.2.5 Conclusions ............................................................................................ 67 3.3 Determinants of Mobility..................................................................................... 70 3.3.1 The Migration Choice ............................................................................ 70 3.3.2 Macroeconomic Determinants ............................................................... 72 3.3.3 Microeconomic Determinants................................................................ 75 3.4 Key Mobility Hurdles .......................................................................................... 80 3.5 Conclusions.......................................................................................................... 86 4. ASESSMENT OF GEOGRAPHIC MOBILITY POLICIES .................................... 88 4.1 Introduction.......................................................................................................... 88 4.2 Workers Mobility on the EU Policy Agenda....................................................... 89 4.3 Active and Passive Labour Market Policies ........................................................ 90 4.3.1 Passive Labour Market Policies ............................................................. 90 4.3.2 Active Labour Market Policies .............................................................. 92 4.4 Education and Training Policies .......................................................................... 96 4.5 Integration Policies ............................................................................................ 101 IZA, NIRAS Consultants, AMS ii IZA Research Report No. 19 Geographic Mobility in the European Union: Optimising its Social and Economic Benefits 4.6 Information Policies........................................................................................... 104 4.7 Harmonisation and Coordination Issues ............................................................ 109 4.7.1 Free Movement of Workers ................................................................. 109 4.7.2 Recognition of Qualifications .............................................................. 111 4.7.3 Portability of supplementary pensions and the coordination of social security rights ....................................................................................... 113 4.8 Conclusion: Geographic Mobility Policies in a Flexicurity Framework........... 115 5. POLICY RECOMMENDATIONS ............................................................................ 120 5.1 Introduction........................................................................................................ 120 5.2 Strengthening the Institutional Preconditions for Mobility ............................... 121 5.3 Developing Mobility-friendly Educational Policies .......................................... 122 5.4 Creating Effective Information and Social Networks........................................ 123 5.5 Easing Mobility Barriers due to Diversity of National Systems........................ 125 5.6 Evaluating Mobility-related Policies Properly................................................... 126 6. APPENDIX ................................................................................................................... 127 7. REFERENCES............................................................................................................. 139 IZA, NIRAS Consultants, AMS iii IZA Research Report No. 19 Geographic Mobility in the European Union: Optimising its Social and Economic Benefits LIST OF TABLES Table 1: Selected Characteristics of recently arrived immigrants from other EU15/EU12 Member States in the EU-15, EU-12, EU-27 – 2006 (in percent) ................................... 25 Table 2: Geographic Mobility in the United States 2005-2006 (in Percent of Working Age Population).......................................................................... 29 Table 3: Mobility to Another Country Over Past Ten Years – Frequency and Duration ........ 30 Table 4: Share of Population by Type of Geographic Mobility............................................... 33 Table 5: Frequency of Geographic Mobility............................................................................ 36 Table 6: Ranking of Country Effects by Type of Completed Geographic Mobility................ 42 Table 7: Share of Population with Intention to Move by Type of Geographic Mobility......... 43 Table 8: Unemployment Rate Differences in Percentage Points - 2006.................................. 53 Table 9: Purchasing Power Adjusted Wage Percentage Differences - 2002 ........................... 54 Table 10: Factors Impacting Positive EU Integration Attitudes .............................................. 65 Table 11: Factors Influencing Decision to Move..................................................................... 71 Table 12: Factors Impacting Moving Intentions...................................................................... 77 Table 13: Perceived Difficulties Impacting on Expected Future Mobility .............................. 81 Table 14: Individual Characteristics Impacting on Perceived Key Mobility Hurdles ............. 83 Table 15: A Number of EU-15 Countries Still Impose Restrictions on Workers from New Member States................................................................................................................ 110 Table 16: Combinations of Spatial Flexibility and Security.................................................. 116 Table A1: Stocks of Foreign Born by Origin and Destination Country for the EU-27 to EU-15 – 2006 (in thousands) ............................................................. 127 Table A2: Stocks of Foreign Born by Origin and Destination Country from the EU-27 to EU-12 – 2006 (in thousands).......................................................... 128 Table A3: Share of Active Working Age EU-27 and Non-EU-27 Foreign Born Residents in an EU-27 Country Relative to the Total Active Working Age Population of Country of Residence, 1995-2006 (percentage)..................................... 129 Table A4: Share of Active Working Age EU-27 and Non-EU-27 Foreign Nationals Resident in Another EU-27 Country Relative to the Total Active Working Age Population of Country of Residence, 1995-2006 (percentage)...................................... 130 Table A5: Share of Active Working Age EU-15 Foreign Nationals Resident in Another EU- 27 Country Relative to the Total Active Working Age Population of Country of Residence, 1995-2006 (percentage) ............................................................................... 131 IZA, NIRAS Consultants, AMS iv IZA Research Report No. 19 Geographic Mobility in the European Union: Optimising
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