Skip navigation
Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp013484zg916
 Title: From Bismarck to Maastricht: The March to European Union and the Labor Compact Authors: Krueger, Alan B. Keywords: labor compactEuropean Unioneconomic integration Issue Date: 1-Sep-1999 Citation: Labour Economics, vol. 7, no. 2, March 2000 Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 424 Abstract: This paper considers the likely impact that European Union (EU) will have on the labor compact. It is argued that, despite increased economic integration in Europe, countries will still be able to maintain distinct labor practices if they are willing to bear the cost of those practices. The incidence of many social protections probably already falls on workers. In addition, it is argued that imperfect mobility of capital, labor, goods and services will limit the pressure that integration will place on the labor compact. Evidence is presented suggesting that labor mobility among EU countries has not increased after the elimination of remaining restrictions on intra-EU labor mobility in 1993. Moreover, immigration from non-EU countries, which is much larger than intra-EU migration, has declined since 1993. Evidence is also reviewed suggesting that the demand for social protection rises when countries are more open, and therefore subject to more severe external shocks. This ﬁnding suggests that increased economic integration and European Monetary Union could lead to greater demand for social protection. The U.S. experience with state workers’ compensation insurance programs is offered as an example of enduring differences in labor market protections in highly integrated regional economies with a common currency. URI: http://arks.princeton.edu/ark:/88435/dsp013484zg916 Related resource: http://www.sciencedirect.com/science/journal/09275371 Appears in Collections: IRS Working Papers

Files in This Item:
File Description SizeFormat
424.pdf158.89 kBAdobe PDF

Items in Dataspace are protected by copyright, with all rights reserved, unless otherwise indicated.