Quantifying the Benefits of Labour Mobility in a Currency Union.
Unemployment differentials are greater between countries in the euro area than between U.S. states. In both regions, net migration responds to unemployment differentials, though the response is smaller in the euro area compared to the U.S. We use a multi-country DSGE model with cross-border migratio...
| Publicado en: | Review of Economic Studies Vol. 93; no. 2; pp. 1038 - 1077 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Oxford University Press / USA
Mar2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=192334026&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 192334026 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Mar2026 vid: 93 iid: 2 pid: 622 pub: Oxford University Press / USA artinfo: ui: 192334026 10.1093/restud/rdaf055 ppf: 1038 ppct: 39 formats: tig: atl: Quantifying the Benefits of Labour Mobility in a Currency Union. aug: au: House, Christopher L Proebsting, Christian Tesar, Linda L affil: University of Michigan and NBER, USA KU Leuven, Belgium su: Labor mobility Business cycles Monetary unions Monetary policy Macroeconomic models Eurozone Employment statistics sug: subj: Labor mobility Business cycles Monetary unions Monetary policy Macroeconomic models Eurozone Employment statistics keyword: copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 inLanguage:en International business cycles International migration Optimal currency areas publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf055 copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 inLanguage:en International business cycles International migration Optimal currency areas publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf055 ab: Unemployment differentials are greater between countries in the euro area than between U.S. states. In both regions, net migration responds to unemployment differentials, though the response is smaller in the euro area compared to the U.S. We use a multi-country DSGE model with cross-border migration to quantify Mundell's hypothesis that labour mobility could substitute for independent monetary policy in a currency union. While not as effective as independent monetary policy, increased labour mobility reduces business cycle fluctuations for most countries in the euro area. However, Mundell's conjecture does not hold uniformly. For countries that primarily face demand shocks, labour mobility stabilizes inflation and unemployment and improves welfare. If supply shocks are dominant however, labour mobility increases the cost of being in a currency union by magnifying inflation volatility. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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