Cross-border Labor Mobility Research Articles

Improved cross-border relevance through integrated interventions: the TAPE tool of the INTERREG V-A Slovakia-Hungary Programme

ABSTRACT The paper presents the first outcomes and results of using an integrated territorial tool applied by the Interreg V-A Slovakia-Hungary Cooperation Programme (2014–2020), the ‘Territorial Action Plan for Employment’, or, briefly: the TAPE. The tool is aimed at facilitating quality employment and cross-border labour mobility through the implementation of 2–7 interdependent projects within a geographically defined subregion of the programme area, with the involvement of SMEs, training institutions, NGOs and municipalities. The author introduces the tool and the nine TAPEs financed by the CBC programme and gives a comprehensive assessment of their outcomes and results from the points of view of cross-border labour market development, integrated soft planning and trust building with a special focus on the aspect of cross-border relevance. The study concludes that the tool does not meet the preliminary expectations: its cross-border relevance is not much stronger than the traditional standalone CBC projects. At the same time, the bottom-up cross-border planning exercise has significant added value which might make the tool attractive for other CBC programmes, too.

Posting of workers and the border of the labour market

Drawing on research conducted by the authors in the frame of the POSTING.STAT research project, this article explores the legal fiction that posted workers do not, at any time, ‘gain access’ to the labour market of a host State where they are in fact (temporarily) working. Hence, it analyses following question: at what point and under which circumstances are posted workers considered as working in a given Member State? To do so, it considers the use of the concept of ‘labour market’ across the case law of the Court of Justice concerning posting workers, to identify the constitutive elements of the implicit definition adopted by the Court. This analysis is compared with economic/statistical assumptions applied when measuring employment in a country. From a statistical point of view, the labour market appears to be demarcated by the place of establishment of the employer, thus excluding work (i.e., services) carried out through non-established employers. Consequently, cross-border labour mobility through the freedom to provide services does not fall within these boundaries and means that posted workers are counted in the employment statistics of their Member State of origin. The approach to posted workers in the labour market of the host State is therefore not only a legal, but also a statistical/economic, fiction. Based on an empirical reality that shows a strong concentration of posted workers in certain sectors, Member States or regions, we argue that courts and legislators, and also national statistical offices, should reconsider this approach.

Economy-wide effects of cross-border labor mobility: The case of Palestinian employment in Israel

This paper investigates the economy-wide effects of cross-border movements of Palestinian labor for employment in Israel. The integration of Palestinian and Israeli labor markets is unique, as it differs from international labor migration and associated remittances described in the literature. Especially, it departs from the cultural and social dimensions associated with international migration because there is no shift in residence. We find based on an economy-wide model calibrated to a newly developed database of the West Bank economy that increasing Palestinian labor demand in Israel negatively affects the West Bank economy by bidding up domestic wages, reallocating labor away from tradable activities and reducing competitiveness of the Palestinian export sector. However, increasing labor income from Israel has positive welfare effects for Palestinian households. Considering these results, the paper identifies policy options for the Palestinian National Authority.

The Impact of Cross-border Labor Mobility on Real Estate Price Trends: A Natural Experiment

This article evaluate how cross-border labor mobility affects real estate price trends. To overcome the endogeneity of mobility choice, a natural experiment is used: The implementation of the “Agreement on the Free Movement of Persons” (AFMP) between the European Union (EU) and Switzerland, on 1 June 2007. This policy change the eligibility criteria for obtaining a cross-border permit by removing residence restrictions and creates a natural experiment for a difference-in-differences analysis. Based on French administrative data, results show that cross-border labor mobility does not affect house price trends in French border regions. However, the implementation of the AFMP has had a positive impact on the evolution of apartment prices in both the short term (six months) and the medium term (three years). In addition, the evolution of apartment prices shows sensitivity to distance from the border and to the housing quality segment.

The Significance of Effective Labour Inspectoratesfor Cross-border Labour Mobility

Efficiently functioning labour inspectorates play a key role for both fair mobility and the protection of workers’ rights. They contribute, for example, to combating and eliminat-ing hazardous working conditions, and ensuring that remuneration and social insurance premiums are actually paid. This is significant in the context of the posting of workers in the framework of the provision of services. Establishing the liability regarding compli-ance with the occupational health and safety regulations is causing serious practical dif-ficulties. Therefore, it is important above all to identify initiatives undertaken at the EU level designed to enhance cooperation of national labour inspectors in this field. It is also important to carry out an assessment whether they work efficiently, require systematis-ing, or perhaps it is necessary to undertake more formalised initiatives, e.g. in the form of a new EU institution.

The Relationship between Cross-Border Labour Mobility and Diffusion of Eco-Innovations: Case of Ukraine

The paper discusses the relationship between the cross-border labour mobility and diffusion of ecoinnovative technologies. Based on the interview surveys the authors found the main directions of circle impact of cross-border cooperation, eco-innovation and open labour markets. The analysis also showed the most important restrictions fordiffusion of eco-innovations in Ukraine and their effect on cross-border labour mobility.

Czech–Polish Cross-Border (Non) Cooperation in the Field of the Labor Market: Why Does It Seem to Be Un-De-Bordered?

The Czech–Polish border is almost 800 kilometres long. Since 1991, 6 Euroregions and two European Groupings of Territorial Co-operation (EGTC) were created and have been conducting cross-border cooperation (CBC) along the entire length of the border. This was probably also the institutionalisation of cross-border co-operation, what has helped to reach and maintain a high level of mutual Czech–Polish relations. What can therefore be considered striking or surprising is a rather low level of cross-border labor mobility between the labor forces of both countries. Authors therefore attempted to identify projects and initiatives in the field of the cross-border labor market along the entire border. Research showed that the CBC stakeholders don’t prioritise co-operation in the field of the labor market, as they don’t see any real cross-border demand. There are some exceptions, driven mainly by the automotive and mining industries in Czechia attracting a Polish workforce. The main reason for the relatively low level of Czech–Polish cross-border co-operation in the field of the labor market is an absence of a major economic engine on either side of the border, rather than any kind of hostile or re-bordering sentiments in mutual relations between subjects from both countries.

Social policy and labour mobility in Europe - the gap between law and enforcement

In this contribution, the author reflects on the gap between EU social policy Regulations and Directives related to cross-border labour mobility and the problems that legal and social practitioners encounter in the application of this regulatory frame. He assesses some basic fields of social policy and workers’ rights applicable in the area of labour mobility (free movement, posting of workers, coordination of social security) to demonstrate the disparity between the 'spirit of the law’ and the practical application of the legislation. This gap is often stemming from contradictions that are the result of the subordination of social rights to the economic freedoms.

Posted Work and Occupational Safety and Health: A Literature Review

This article provides a review of the literature on posting and occupational safety and health (OSH). Although the vulnerabilities of posted workers are discussed in the literature on posting, and the overall OSH risk factors, including those relevant to migrant workers, are discussed in the literature on OSH, the two strands of literature barely intersect. There is therefore an immediate need to study the occupational safety and health of posted workers throughout the European Union. Social factors influencing OSH risks, such as employment fragmentation and precarity, and the various forms of cross-border labour mobility, such as posting, should also be further explored.

Violencia sin tregua. Hondureños en la región del Golfo de México

The Mexican states of Chiapas and Tabasco have been linked for decades to Central American migrations, largely due to cross-border labor mobility. Nevertheless, today the diversification of receiving areas in Mexico requires attention to how such dynamics of mobility, settlement or transit affect these new contexts. Such is the case of the state of Veracruz, which is part of the corridor of the Gulf of Mexico which connects the southern Mexican border with the northern border on its eastern slope. Veracruz, like other states in the country, has emerged as an unplanned destination state – both as a temporary or permanent place of residence - for Central American migrants, especially Hondurans. This article consists of reflections generated from observations and interviews carried out in localities of the center of Veracruz. The typology of violence proposed by Burgois (2005) is employed to contextualize the different forms and expressions of violence experienced by undocumented migrants in transit, and temporary or permanent residents in the studied locales. These forms of violence partially constitute the structural conditions of discrimination and stigmatization linked to the migrants’ condition of “illegality”.

Labour mobility in the Euroregion Galicia–Norte de Portugal: constraints faced by cross-border commuters

ABSTRACTRemoving barriers to labour mobility is expected to contribute to processes of spatial integration in cross-border regions, by an efficient allocation of labour and consequently a convergence between territories separated by a common border. Nevertheless, despite the de-bordering process within the European Union, administrative, legal and language barriers still hamper cross-border labour mobility, preventing the process of labour market integration. The aim of this paper is to identify obstacles to the mobility of cross-border workers commuting within the Euroregion Galicia–Norte de Portugal. The methodology employed combines the analysis of official data on labour mobility with qualitative data gathered from interviews with cross-border commuters, aimed at finding explanations for the different attitudes towards cross-border mobility inside this Euroregion. While traditional push and pull factors remain relevant in explaining cross-border labour flows, the qualitative information offers new insights into different levels of indifference from cross-border workers. The result is a fragmented labour market where Norte de Portugal is providing low-qualified, low-wage labour, whereas Galicia is contributing with well-paid, qualified labour.

The Transnationalization of Labor Mobility: Development Trends and Selected Challenges Involved in Its Regulation

Internationalization of value chains and of for-profit as well as non-profit organizations, and as a result of cheaper and safer mass migration, transnational labor mobility is of increasing importance. The article presents the development of the different types of cross-border labor mobility (from long-term labor migration over expatriats/inpatriats up to business traveling); it analyses crucial aspects of labor conditions and how the collective regulation of working, employment and participation conditions in general is affected: could local or national forms of labor regulation cope with these new conditions? What are the main challenges when it comes to collective bargaining and the monitoring of labor conditions? The article is based on a three year international and comparative research in Germany and Mexico. First, different ideal types of transnational labor mobility are distinguished that have emerged as a result of increasing cross-border labor mobility. Then potential sources of labor related social inequality and challenges in the regulation of the working, employment and participation conditions for transnational workers are discussed. Finally, some conclusions are drawn for further research.

Fiscal policy in a small open economy with cross-border labor mobility

The large and stable inflow of workers’ remittances through formal financial channels to developing countries prompted authorities to harness fiscal resources from this flow. This paper develops a macro-dynamic model of a small open economy with cross-border labor mobility emphasizing fiscal policy. The flow of remittances is the result of a household’s optimizing decision to migrate. We examine the macroeconomic responses to fiscal policies. First, we show that an economy with international migration is more resilient to demand shocks resulting from fiscal contraction. Second, the short-run association between remittances and domestic output depends on the sources of the shocks. Third, our results indicate that the equilibrium impact of a tax on remittances can be expansionary and welfare-improving when an economy is initially close to full employment. The presence of utility-enhancing government expenditure and a potential negative externality from over-allocation of labor abroad (over migration) justify the presence of distortionary taxes.

Is Global Equality the Enemy of National Equality?

The bulk of global inequality is accounted for by income differences across countries rather than within countries. Expanding trade with China has aggravated inequality in some advanced economies, while ameliorating global inequality. But the 'China shock' is receding and other low-income countries are unlikely to replicate China's export-oriented industrialization experience. Relaxing restrictions on cross-border labor mobility might have an even stronger positive effect on global inequality. However it also raises a similar tension. While there would likely be adverse effects on low-skill workers in the advanced economies, international labor mobility has some advantages compared to further liberalizing international trade in goods. I argue that none of the contending perspectives -- national-egalitarian, cosmopolitan, utilitarian -- provides on its own an adequate frame for evaluating the consequences.

The Effect of Regulatory Harmonization on Cross-Border Labor Migration: Evidence from the Accounting Profession

The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers, essentially making it easier for accounting professionals to move across countries. Our research design compares the cross-border migration of accounting professionals relative to tightly matched other professionals before and after regulatory harmonization. We find that international labor migration in the accounting profession increases significantly relative to other professions. We provide evidence that this effect is due to harmonization, rather than increases in the demand for accounting services during the implementation of the rule changes. The findings illustrate that diversity in rules constitutes an economic barrier to cross-border labor mobility and, more specifically, that accounting harmonization can have a meaningful effect on cross-border migration.

The economic crisis as a driver of cross-border labour mobility? A multi-method perspective on the case of the Central European Region

ABSTRACTThis paper discusses labour mobility from the Czech Republic, Hungary and Slovakia to Austria during the period before and after the economic crisis of 2008/2009. Building up on the TRANSLAB research project, we illustrate various facets of the interregional labour market with a mixed methods approach using regional macro-economic data, national labour market statistics, 20 expert interviews and a longitudinal survey consisting of 1345 cross-border commuters who work in Austria. Empirically we demonstrate that, due to the gradual opening of the Austrian labour market from 2004 to 2011, flows of cross-border commuters have steadily increased. Since 2009 the social composition of cross-border commuters has changed as well. We can observe a growing number of workers seeking employment in Austria who have been most vulnerable during the crisis: the young, the lowly educated and female workers. Moreover, expert interviews show a rising and economically driven demand for employment in Austria.

The Effect of Regulatory Harmonization on Cross-Border Labor Migration: Evidence from the Accounting Profession

The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union (EU) initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers, essentially making it easier for accounting professionals to move across countries. Our research design compares the cross-border migration of accounting professionals relative to tightly-matched other professionals before and after regulatory harmonization. We find that international labor migration in the accounting profession increases significantly relative to other professions. We provide evidence that this effect is due to harmonization, rather than increases in the demand for accounting services during the implementation of the rule changes. The findings illustrate that diversity in rules constitutes an economic barrier to cross-border labor mobility and, more specifically, that accounting harmonization can have a meaningful effect on cross-border migration.

Intra-EU Labor Mobility: A Key Pillar of the EU Architecture Subject to Challenge

Intra-EU labor mobility is often characterized as a major contributor to better functioning European labor markets. Does the evidence of recent cross-border labor mobility support this positive expectation? Does the EU live up to its potential of being a role model by showing that managing free movement of labor in turbulent times is possible? We will show that, in spite of its potential, the challenges facing free movement of labour are tremendous. We address four important aspects: enlargement; transitional measures and their consequences; the crisis and its effects; and the potential offered by free movement for better labor allocation.

The Effect of Regulatory Harmonization on Cross-Border Labor Migration: Evidence from the Accounting Profession

The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union (EU) initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers, essentially making it easier for accounting professionals to move across countries. Our research design compares the cross-border migration of accounting professionals relative to tightly-matched other professionals before and after regulatory harmonization. We find that international labor migration in the accounting profession increases significantly relative to other professions. We provide evidence that this effect is due to harmonization, rather than increases in the demand for accounting services during the implementation of the rule changes. The findings illustrate that diversity in rules constitutes an economic barrier to cross-border labor mobility and, more specifically, that accounting harmonization can have a meaningful effect on cross-border migration.

Трудовая мобильность каракачан в Болгарии – условия и мотивация

The term migration is used to describe a type of human behavior with immediate social, cultural, economic and political consequences. The researched cross-border labor mobility of the Karakachans in Bulgaria in the post socialist period affects more than 90% from the Karakachan families in only a few years. This problem is pressing concerning the protectional Greek policy towards the Karakachan community from the beginning of the 1990s and the following mutual related migratory and identity-processes. Subjects of the present research are the Karakachans in Bulgaria, the Bulgarian people married to Karakachans and children from mixed marriages. The topics of the research include the various circumstances and factors for their labor mobility in Greece after 1989. The basic aim of this work is to explain the problem about the origin of researched labor mobility, which should answer the questions why it is possible and very probable. As a result, the social-economic, political and cultural circumstances which are important for the origin and the development of the labor mobility of the Karakachans in Bulgaria since 1989, are being depicted and investigated here.