CORDIS Project
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This research investigates the relationships between unemployment, fiscal policies, and labor mobility within a monetary union. By modeling migration decisions, the project aims to provide insights into how different fiscal measures impact labor movement from economically distressed regions to more stable areas.
In the aftermath of the crisis, unfavourable socio-economic conditions with high unemployment, steep decreases in salaries and welfare allowances, and deterioration in career prospects have triggered intensified labour mobility, with a direction from the so-called Peripheral countries to the Core of the euro area.
Primarily due to the surge in immigration from its EU partners, Germany is now the second largest immigration country in the industrialised world, after the U.S.
Fiscal consolidation p…
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