This Great Graphic comes from Zero Hedge, which posted this article from Azizonomics. It provides some numbers to the well appreciated fact that the US enjoys greater labor mobility than does Europe.
While this is helpful, there are a few caveats to keep in mind. First, mobility of state lines (US) or cross-border (Europe) is only one kind of mobility. A fuller analysis of mobility would include movement between industries and even jobs within the same industry.
Second, the data is almost 4 1/2 years old. How has the economic and financial crisis impacted labor mobility? It seems that some countries, like the periphery of Europe, rely extensively on the family for economic support. This may, in part, be a function of the type of welfare system has emerged. It often features more limited unemployment compensation. The market for support services, including child care, for example, may also be less developed; further encouraging reliance on the family. Third, countries that have experienced a sharp drop in housing prices may also experience less labor mobility as households are tied to the depreciating asset.
While this is helpful, there are a few caveats to keep in mind. First, mobility of state lines (US) or cross-border (Europe) is only one kind of mobility. A fuller analysis of mobility would include movement between industries and even jobs within the same industry.
Second, the data is almost 4 1/2 years old. How has the economic and financial crisis impacted labor mobility? It seems that some countries, like the periphery of Europe, rely extensively on the family for economic support. This may, in part, be a function of the type of welfare system has emerged. It often features more limited unemployment compensation. The market for support services, including child care, for example, may also be less developed; further encouraging reliance on the family. Third, countries that have experienced a sharp drop in housing prices may also experience less labor mobility as households are tied to the depreciating asset.
Great Graphic: Labor (Im)Mobility
Reviewed by Marc Chandler
on
August 23, 2012
Rating:
Reviewed by Marc Chandler
on
August 23, 2012
Rating:
