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Labour Market Integration: Consequences of Cross-Border Commuting

Labour Market Integration: Consequences of Cross-Border Commuting

Objective

Free movement of people and a common labour market is one of the four main pillars underlining the single market of the EU. The central aim of the Europe 2020 strategy, is to promote “smart, sustainable an inclusive growth”. One of the flagship initiatives of the EU2020 strategy centers on the labour market with of focus on the labour market matching, e.g. through labour mobility. In 2016 around 92% of the EU-28 workforce resided and worked in the same region (NUTS 2), 7% commuted between regions while just under 1% of the workers were cross-border commuters. These low mobility figures are striking considering that over a third of the EU population lives in a border region. Hence, the potential for increased integration across borders is large but there is a gap in the knowledge on mobility through cross-border commuting.

In the past, data constraints have hindered research on cross-border commuters, but in the proposed project, BRIDGE, I am able to overcome those challenges. BRIDGE is at the forefront of this research by being the first study to merge and link employee-employer micro-data across borders. In addition thereto, we have the unique opportunity to look simultaneously at the impact of a large policy shock (Öresund Bridge) on labour market and firm outcomes in both Denmark and Sweden before and after the introduction of a physical connection between the two countries.

This combination of a large policy shock and cross-country linked micro-data allows for a large array of potential research questions related to labour market and firm outcomes, integration, and regional development. The focus of BRIDGE will be on how lower cross-border thresholds to labour mobility impacts economic outcomes of the commuter and the employers/firms hiring them. In particular: Does cross-border mobility/integration improve labour market matching? Are there any gender specific effects? How does increased cross-border integration impact firm trade and specialization?

Coordinator

KOBENHAVNS UNIVERSITET

Address

Norregade 10
1165 Kobenhavn

Denmark

Activity type

Higher or Secondary Education Establishments

EU Contribution

€ 212 194,80

Project information

Grant agreement ID: 793678

Status

Ongoing project

  • Start date

    15 January 2019

  • End date

    6 May 2021

Funded under:

H2020-EU.1.3.2.

  • Overall budget:

    € 212 194,80

  • EU contribution

    € 212 194,80

Coordinated by:

KOBENHAVNS UNIVERSITET

Denmark