Harnessing European Labour Mobility Mentoring and Mobility Lisbon, 22.09.2017 Eric Thode

Agenda The case for geographic European labour mobility Approach of “Harnessing European Labour Mobility” Scenario description Policy recommendations Conclusion Harnessing European Labour Mobility

Potential Benefits and Costs of Labour Mobility Economic efficiency Reduce imbalances Improve innovative capacity in destination country Bridge cross-cultural differences Mutual understanding Foster the European idea Escape economic hardship Prospect of upward mobility Expand one’s own horizon Cost of moving Cost of integration Diminish innovative capacity in country of origin Social tensions Psychological costs Economic losses by leaving social networks Inadequate employment conditions Economy Society Individual  Asymmetry in the incidence of benefits and costs Harnessing European Labour Mobility

Source: Eurostat, own calculations. Unemployment Rates in EU Member States, 2008, 2013 and 2017, monthly figures of March Standard deviation of unemployment rates March 2008: 1,95 pp March 2013: 5,45 pp March 2017: 4,39 pp Source: Eurostat, own calculations. Harnessing European Labour Mobility

Firm mobility intentions, 2008-10 and 2011-12 Firm intentions: Planning to move within the next 12 months. Source: Gallup World Poll. Harnessing European Labour Mobility

Net migration rates for selected EU Member States in selected years, per 1,000 inhabitants Harnessing European Labour Mobility

Approach of Our Study Harnessing European Labour Mobility

Harnessing European Labour Mobility

Deregulation, negative integration Reignited market forces spark growth Multi-directional, business driven High volume, short duration High- and low-skilled Training and social security Harnessing European Labour Mobility

Misguided political integration Over-regulation chokes off growth Emigration out of Europe Low volume, long duration Non-work related structure Restore market forces, revive Europe Harnessing European Labour Mobility

Robust Policy Recommendations Improve EU-wide job matching Foster a fair deal on European talent Invest in training and up-skilling Harnessing European Labour Mobility Support mobility-oriented mindsets Remove adminis-trative barriers Harnessing European Labour Mobility

Recommendations in More Detail I Improve EU-wide job matching Further develop EURES Provide one-stop services beyond pure job matching Improve recognition of qualifications Invest in training and up-skilling of mobile workers Improve language training in countries of origin Make national skill development policies more compatible Interlink the ESF objectives “Promoting employment and supporting labour mobility” and “investing in education, skills and lifelong learning” Harnessing European Labour Mobility

Recommendations in More Detail II Remove administrative barriers Complete and simplify coordination of social security systems Assist in dealing with national administrative procedures Support mobility-oriented mindsets Provide exchange programmes in school Prevent abusive behavior by employers and employees Oppose nationalism Foster a fair deal on European talent Encourage circular mobility Reward positive externalities from mobility Harnessing European Labour Mobility

Additional Recommendations Recommendations with a focus on the national level Improve flexibility on national labour markets Provide financial support for least-mobile groups Help localities deal with unevenly distributed social burdens of mobility Invest in infrastructure projects for mobility (with EU support) Scenario-dependent recommendations Marketised Europe: Develop an EU-wide minimum wage and working conditions policy Fragmented Europe: Foster mobility at a regional and bilateral level Harnessing European Labour Mobility

Conclusion: The Link between European Integration and Improving Mobility Negative Integration „Freedom from …“ Positive Integration „Freedom to …“ Non-discrimination Right to work Remove barriers Provide transparency Provision of services Elements of active labour market policy Improve coordination Harnessing European Labour Mobility

Thank you! Eric Thode