Cross Border Mobility, Geographical Mobility, Regional Labour Market, Labour Market Monitoring, Commuting

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1 Christa Larsen, Ruth Hasberg, Alfons Schmid, Marc Bittner, Franz Clément (Eds.): Measuring Geographical Mobility in Regional Labour Market Monitoring. State of the Art and Perspectives ISBN , ISBN (e-book pdf) Rainer Hampp Verlag, München u. Mering, 2011, 308 S., Geographical mobility in Europe is a chance and a challenge for regional labour markets. There is an unknown potential for the economy as foreign labour markets may provide qualified workers and the freedom of movement brings more flexibility. On the other hand, national and regional politics face the challenge of developing systematic approaches for enhancing mobility and managing its consequences. Transparency of migration flows, a sound database and substantiated knowledge about geographical mobility is the prerequisite for all actors. Therefore this anthology provides a synopsis of the current state of the art from different countries and regions, including best practice examples and solution approaches. Key Words: Cross Border Mobility, Geographical Mobility, Regional Labour Market, Labour Market Monitoring, Commuting Dr. Christa Larsen is a social scientist and Managing Director of the Institute for Economics, Labour and Culture (IWAK) at the Goethe-University in Frankfurt am Main. Her current work concentrates on regional labour market monitoring, regionalised analyses of labour markets for health workers, systems for information and diagnoses of labour markets and regional prognoses. Ruth Hasberg is sociologist and scientist at the Institute for Economics, Labour and Culture (IWAK). Her current work is located in the fields of social structure analysis, social inequality and regional labour market monitoring on international and national level. Prof. Dr. Alfons Schmid is Professor for Economics at the faculty of Social Sciences at the Goethe-University in Frankfurt am Main and scientific Director of the Institute for Economics, Labour and Culture (IWAK). His main areas of research are regional developments of employment and labour markets, regional competitiveness, regional forecasting, regional studies on poverty, wealth and attitudes towards the welfare state. Marc Bittner is senior researcher at the Paul Lazarsfeld Society for Social Research (PLG) and at the Society for Studies of Social Science (SWS) in Vienna. His research focuses on statistical analysis, as well as quantitative and qualitative social research on various topics like labour market, migration, enlargement of the EU, South-East-Europe and elderly care. Franz Clément, PhD, is social scientist working in the field of labour market policy, cross-border workers and social dialogue at the CEPS/INSTEAD research institute in Luxembourg. He is head of the REPREM unit (Relations Professionnelles et Emploi). In previous years he was responsible for the monitoring of several projects concerning the Greater Region s labour market, especially the EURES programme (European Employment Services).

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3 Christa Larsen, Ruth Hasberg, Alfons Schmid, Marc Bittner, Franz Clément (Eds.) Measuring Geographical Mobility in Regional Labour Market Monitoring State of the Art and Perspectives Rainer Hampp Verlag München, Mering 2011

4 Bibliographic information published by the Deutsche Nationalbibliothek Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at ISBN (print) ISBN (e-book) DOI / First published in Rainer Hampp Verlag München, Mering Marktplatz 5 D Mering, Germany All rights preserved. No part of this publication may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publisher. In case of complaints please contact Rainer Hampp Verlag.

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6 2 Contents I Foreword... 5 II Introduction... 7 Editors Note Christa Larsen / Ruth Hasberg / Alfons Schmid / Marc Bittner / Franz Clément... 7 III State of the Art in Measuring Cross Border Mobility - Concepts, Measures, Data and Applications III.1 Commuting and Migration in Western European States The Grand Duchy of Luxembourg: A first Glance on Cross-border Workers and Immigrants in a small Member State Franz Clément / Claudia Hartmann-Hirsch Cross-border Commuting in the Swiss-Italian Region; Labour Market Effects of Progressive Integration Moreno Baruffini Mobility across the Italian Border Gianmarco Gilardoni III.2 Commuting and Migration from New EU-Member States in Central and Eastern Europe (CEE) Long-term Monitoring of Potential Labour Migration and Labour Force Demand in the Border Regions of Austria with the Czech Republic, the Slovak Republic and Hungary Marc Bittner / Michaela Hudler-Seitzberger / Claudia Neunteufl Cross-border Labour Market Monitoring in CENTROPE Miroslav Pala / Sylva Talpová Cross Border Mobility in Czech Republic Jiří Braňka / Hana Žáčková Obstacles to Mobility of Slovenian and Croatian Cross-border Workers into Friuli Venezia Giulia Labour Market Michele Berti Cross-Border Labour Mobility between Romania and Hungary Ciprian Panzaru... 88

7 3 Contemporary Economic Emigration from Poland its Scale, Destinations, Motivations and Outlook Iwona Kukulak-Dolata Cross Border Mobility from the Eastern Countries to the United Kingdom and Germany Fessum Ghirmazion / Ruth Hasberg West Pomeranian Research on Labour Migration of the Population Pawel Nowak / Pawel Wdowiak Undeclared Labour of Polish Women in Private Households in Germany and Austria Sigrid Rand Return Migration of Young Poles: Implications for the Regional Labour Markets Jan Brzozowski IV State of the Art in Measuring Intra- and Interregional Mobility (within a Nation State) Concepts, Measures, Data and Applicatons Intra-regional and Inter-regional Geographical Mobility Valerie Egdell / Ronald W. McQuaid Monitoring Geographical Mobility in the Ruhr Region. Historical and Methodological Considerations Jean-Luc Malvache Inter-Regional and Cross-border Mobility in the Flemish Labour Account Marleen Jacobs / Wouter Vanderbiesen Monitoring Geographical Mobility from, toward and within a Regional Labour Market: the Case of Lombardy Claudia Graziani / Mattia Martini / Mario Mezzanzanica Territorial Mobility Methods for Measurement Using the Example of the Labour Market Observatory of South Tyrol Stefan Luther The Mobilities of Young People in France during and after their Studies Patrice Caro Long-distance Commuters a Potential Skilled Labour Pool for Brandenburg Businesses Markus Höhne / Carsten Kampe / Daniel Porep / Anja Walter

8 4 V Conceptual and Practical Issues Measuring Job-Related Multi-Locality Overview and Conceptual Framework Knut Petzold The European Dictionary on Skills and Competences (DISCO) and its Impact on Supporting Geographical Mobility in Regional Labour Markets Heidemarie Müller-Riedlhuber / Petra Ziegler VI European Framework and the Relevance of Regions Labour Mobility in Europe: The Challenge of the Liquid Society Marco Ricceri Trans-regional Cooperation to Boost Labour Mobility and Improve its Measurement in Regional Labour Market Monitoring Christa Larsen About the Authors Abstract

9 5 I Foreword Free movement of citizens and, especially, free movement of workers is one of the cornerstones of European integration. Built on the four freedoms, the European Union has, for a long time now, encouraged labour mobility within the community; it is at the heart of the European idea. A comprehensive body of EU legislation covers many aspects of the right to move and reside freely of European citizens. It protects the rights of migrant workers and coordinates many different aspects of social security protection. Through these instruments it guarantees the free movement rights which are so important for the workers and their families and essential to the economies of our countries. For a long time now, Luxembourg has encouraged such labour mobility. Indeed, my country, which is located at the heart of the so-called Greater Region comprised also of the bordering regions of Germany, France and Belgium, has benefitted a lot from labour mobility. Every day about people cross the borders into Luxembourg to work on our labour market; they make up 41% of the labour force. Cross-border labour mobility is thus a daily reality in Luxembourg, which has the highest share of cross-border workers on its labour market in the European Union. It is clear that the Luxembourgish economy and also its labour market would not have been able to grow as much as they did over the last twenty years had it not been for the influx (inflow) of workers from outside the country. Labour mobility has been a major factor in this growth. But labour mobility can also play an important role in today s open economy in the European Union. Many countries are affected by an employment crisis that is the result of the financial and economic crisis that has hit them hard and contributed to a steep rise in unemployment, especially amongst the young. At the same time, other countries and regions have to face labour shortages and need an influx of skilled workers for their economy. In this situation, labour mobility can play an important role in alleviating the pressure in both cases. Young, skilled and well-trained workers are willing to move in order to find a job and make a decent living. Therefore we have to encourage labour mobility within the European Union in order to help those looking for jobs to find them in the countries where they are more readily available. But in order to encourage labour mobility, we also need to have a good understanding of the realities of our different labour markets, both national and regional. We have to get a better grasp of the labour shortages and surpluses and analyse in depth what role geographical mobility can play here. This is one of the reasons why Luxembourg is currently setting up a Monitoring Network for Employment ( Observatoire de l Emploi) in order to analyse in depth the workings of the labour market in Luxembourg and the Greater Region and get a better understanding of the employment situation in conjunction with labour mobility and migration in Luxembourg.

10 6 Measuring geographical mobility in regional labour market monitoring state of the art and perspectives is an important contribution to this debate and it will help us to better understand labour mobility between the different regions of the European Union. Nicolas Schmit Minister for Labour, Employment and Migration of Luxembourg Luxembourg

11 7 II Introduction Editors Note An important starting point for the interest in the geographic mobility of labour is a mismatch situation in regional or local labour markets. Especially in those cases where the labour supply, in its quantitative and qualitative dimensions, remains far lower than the demand and locally available resources (education, labour mobilisation) are assessed to be insufficient to adequately satisfy the existing demand. In such a situation, meeting the demand through labour from other regions can be one answer. Naturally, the regional and local decision-makers can be faced with the opposite situation of a labour over-supply. Here, the migration of labour can lead to improvements in the local labour market, such as wage stability among others. Guiding, or influencing, labour flows into or out of regions and localities has occurred presumably only in rare cases. This is due to, among other things, regions and localities have insufficient transparency with respect to the flow of workers in or out of their labour markets. The systems of regional labour market monitoring, which should actually be creating this transparency, seldom deal with this area and, when they do, only in a fragmentary manner. Of the approximately 400 labour market observatories that conduct regional and local labour market monitoring in European regions, less than an estimated ten per cent deal with this subject. When it is done, it focuses primarily on the balance of incoming commuters against outgoing commuters, partially differentiated by skill levels. Only a handful of observatories possess more differentiated data bases. Most of the observatories in this group are established in European border regions. Their detailed databases provide: information on who are these mobile labour participants (age, sex, household/family structure, skill level); what form of mobility this is (temporary, permanent); how this mobility changes over time coupled with economic cycles; and what are the regions of origin and destination. Labour mobility also creates changes in the supply and demand of goods and services in the affected regions as well as having effects on the local development of wages, infrastructure, population changes, and others. In a comprehensive monitoring, the relevant indicators of these changes are also considered. This volume offers good practice examples of these comprehensive approaches. These could be an important orientation for regional observatories and associated researchers and consultants who want to integrate geographic mobility of labour into how they approach regional labour market monitoring. To begin with, it is absolutely necessary to first furnish definitional clarity on: which forms of geographic mobility should be considered; which data collections are available to describe this; and what should be the preferred conceptual context, given the constellation of interests of the local political decision-makers.

12 8 Definitions The definition of geographic mobility of labour has a time aspect. Mobility is distinguished between that of a temporary character and that which is permanent. Temporary mobility is when the worker returns to their point or country of origin. Here, the duration can be quite short, such as daily or weekly commuters. It can be somewhat longer, such as, for example, seasonal workers. It can also last several years, as when the worker intends to return home after building up a certain level of savings or collecting certain professional experience. In most cases, persons wanting to return after ending their professional lives are assigned to the permanent category, rather than being considered temporary. This is due to the fact that these individuals are no longer available to the labour market in the home area. A labour mobility designated as permanent refers to workers who leave their origin region and do not intend to return. These are migrants in the classical sense who leave one place and leave nothing behind. All temporary forms of mobility share in common that the original residence is retained. However, with increasing duration and increasing distance, a second residence becomes more likely. Where the mobility covers a very long duration and longer distances, it has been empirically shown that the second residence takes on more importance over the original residence. These forms also show that the empirical distinction between temporary and permanent can be fluid. Such is also the case when the intention to return to the origin point remains, but is never implemented turning the temporary mobility into a permanent one. Aside from the time dimension, mobility can also be defined in terms of physical distance. Here, a distinction is to be made between movements within a European nation state and between states, here referring to border crossing. Within a nation, intraregional and inter-regional movements can be measured, whereby in most cases the former shows empirically a smaller radius and the latter a significantly larger extension. It should be noted here however that cross-border mobility can also be intra-regional, such as a cross-border labour market (the EURES regions for example). Inter-regional cross-border mobility refers in comparison to much greater distances. The evidence shows that these definitions correspond closely with the empirical experiences. The spatial dimension of mobility is tied in many ways to the time aspect. For example, permanent forms of mobility are tightly associated with cross-border movements. In cases of temporary movements, there is a close correlation between time and movement within a country. The examples in this volume will convey a sense of which patterns can arise in which contexts. Data Situation The difficult data situation is probably a major reason for the insufficient attention to geographic mobility of labour in most approaches used in regional labour market monitoring. The usual practice of monitoring is to use process data generated by administrative activities in Labour and Educational Offices and prepared for public statistical offices. Such structural data rarely exists for this topic. Mostly this is inventory data. In the employment inventory, inflow and outflow from other regions are captured. By calculating the net effect, a mobility index can be produced. The data situation within (almost) all European countries can be considered to be good. This refers to both intra- and inter-regional mobility (commuting). In the case of crossborder mobility, only a few countries possess such data.

13 9 To complement the inventory data, flow data can be used. This allows capturing the localities of origin and of destination, as well as the duration of employment and the frequency with which this happens. This is especially interesting for seasonal workers. This flow data for measuring mobility within a nation exists in most European countries. Only a few, however, possess data on cross-border mobility. Both inventory and flow data can be analysed for characteristics such as age, sex, skill levels, professions, and, in the case of immigrants, branches. They also provide for building time series. The structural data conveys a snapshot of the situation. It is, however, generally insufficient for decision-makers in regions and localities as it does not provide information about the causes for the mobility measured. Only with knowledge about the reasons or incentives is an intelligent steering possible. Such reasons can be discovered about motives, expectations, knowledge, relevance of previous mobility experiences and social networks, etc. The national labour survey data bases offer such information. These are not, however, translatable to situations in single regions or localities. Often they are used simply for orientation and additional information is generated locally. A few examples in this volume use expert interviews or observations for this purpose. 1 Aside from the explicit labour market data, additional information is necessary for regional decision-makers to help assess the effects of labour mobility on the region and locality. In detail, this is information on economic, infrastructure and population developments. Data covering changes in the social and cultural areas is also needed. Most of these topics can be served with existing data in all European countries. The combination of these three types of data allows a comprehensive understanding of the regional or local situation. Presumably, these data will reveal that the mobility behaviour of single groups varies significantly. Examples of this include that younger workers are more mobile than older and that higher skilled workers are more mobile than workers in middle skill levels. New research has shown that although there is a group-specific behaviour pattern, the actual local conditions are central to whether an individual becomes mobile or not. The exact determination of the influences requires further research. Regional labour market observatories as well as the European Network on Regional Labour Market Monitoring can contribute to further empirical studies, so that new findings can be incorporated into mobility monitoring. 2 In addition, there will be a purposeful exchange of experiences in the coming years in order to form an agreement on trans-regional, European standards in data and methods used within regional labour market monitoring. 1 2 Some push and pull factors for mobility can be singled out in order to identify the relevant themes. Push factors could include: poverty, unemployment, low wages, lack of basic health care and education, conflicts, insecurity and discrimination. Functioning as pull factors could be: prospect of higher wages, potential for improved standard of living, personal or professional development, safety, security, family reunification and freedom from discrimination. This is considered in the article from Egdell and McQuaid in this volume.

14 10 Conceptual Approaches An important criterion of quality in regional labour market monitoring is that not every available piece of data is stored; rather only information is maintained that local decision-makers and those active in steering the market actually need in order to decide and act specifically toward their goals. When geographic mobility should be integrated into an existing system, it must be decided, within the informational needs of the local monitoring user, which conceptual approach should be thus used. One good starting point could be to determine which forms of mobility are relevant for the decision-maker. For example, should only temporary or also permanent mobility be considered? Another conceptual starting point can be the definition of the physical area that should be taken into account. One example here could be to use, according to the criteria of the labour administration, a closed or a functional labour market. A third approach could be to take a group of labour market actors, whose mobility behaviour should be depicted. These could be young people up to 24 years old, women, selected professional groups or academics. A fourth approach might be to look at economic branches with either a very high or very low participation on mobile labour. Naturally, a combination of single approaches can be undertaken, as the case studies in this volume show. Goals and Contents of this Collection With this volume, an overview on the state of the art with reference to geographic mobility monitoring in European regions and localities will be offered. Here theoretical aspects, the measurement of concepts and data, together with applications, will be presented. In order to do justice to the various aspects, this volume combines contributions from researchers, practitioners and representatives of involved interests. They cover a wide variety of European regions and localities with various structural conditions. The descriptions of the state of the art are always combined with examples and approaches for implementation, and for further development. This creates a fertile ground for further discussions and work, enabling a continuously better integration of geographic mobility into regional labour market monitoring. The contributions in this volume were collected from 38 Network members. Thanks go now to them for their active involvement and also for their role in helping to grow the European Network on Regional Labour Market Monitoring into an active social community for development and discussion. The structure of this volume makes two different approaches to the topic of labour mobility possible, which will, hopefully, help the reader to orient and locate themselves easier. In the first section, the cross-border perspective takes the foreground, while in the second section mobility within European nation states is in the focus. In both sections, best practice examples are presented, considerations for further development of ideas and suggestions for improving the data. The third section builds on these with advancements in conceptual and practical ideas. Section 4 brings everything into the context of European structural conditions and discourses. The four sections can be used independently of one another. In the following, we describe the contents of the four sections in more detail.

15 11 In the first section cross-border mobility is the focus. Here the various forms of commuting will be used, but also permanently remaining in the target region, also known as migration. With cross-border mobility, there are two primary forms. The first form is between Western European states with similar economic situations (1.1) and the second is composed of mobility from the new member states from Central and Eastern Europe (CEE) towards Western, Northern and, to a lesser degree, Southern Europe (1.2). In the latter, the different economic and social life situations are the important drivers for mobility and make their influence known through the forms and types of mobility practiced. In Chapter 1.1 Commuting and Migration in Western European States, using the case studies of Luxembourg and Switzerland, it will be shown how the economic success of a region can be based on high immigration and commuter quotas. In both cases, the regional labour market is no longer contained within the national boundaries, rather extends much further. In particular, using the case of Luxembourg, Claudia Hartmann-Hirsch and Franz Clément show clearly that several countries can serve a single labour market, in this case the Greater Region. An important requirement for this is, however, that the structures in the single countries are different, ideally complementary, in order to secure the functioning of the crossborder labour market. Moreno Baruffini shows this as well from the Swiss perspective for the border region between Switzerland and Italy. His contribution is augmented by the article from Gianmarco Gilardoni, who takes the Italian perspective and examines the working and legal conditions for commuters into Switzerland. Through his extensive comparison with other Italian border regions, he makes the reader aware that the specific regional or local conditions, and less so those at the national level, primarily influence which groups of workers become geographically mobile, and influences the forms of this mobility. All authors in this section include information on the data collections used within the framework of the regional labour market monitoring. This is closed with an outline of the needs for further improvements and perspectives. In the following section, 1.2, the commuting and migrating of labour from the new EU member states is examined. The first five articles focus primarily on the CENTROPE states (Austria, Czech Republic, Slovakia, Hungry, Romania and Croatia). The remaining four articles concentrate on the geographic mobility of workers in Poland. Austria belongs to the few countries whose borders were relatively closed to workers from the new member countries until the beginning of Marc Bittner, Michaela Hudler-Seitzberger and Claudia Neunteufl discuss a long-term monitoring, which has measured, since 2004, the willingness of workers in the border regions to migrate to Austria and the readiness of the Austrian employers to employ persons from those regions. This monitoring instrument, one of the few in Europe that works with primary data, helps gauge the mobility potential and makes this information available for the strategic actors in Austria. Also helping to increase the transparency in the same Austrian regions is the objective of the Centrope Project, which is described by Sylva Talpová and Miroslav Pala. Their central questions are directed to the standardisation of data and information, and the comparability with data across borders. Jiří Braňka and his colleague Hana Žáčková show clearly that labour mobility in the Czech Republic is very low and they attempt to explore the reasons for this. This supports the results of the Austrian monitoring system that also shows very low cross border mobility from Czech Republic. This part closes with Michele Berti outlining the obstacles to labour mobility from Slovenia and Croatia into Italy. His

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