The role of labor mobility in enhancing regional economic convergence in Europe

Abstract

The principle of labor mobility stands as a foundational pillar of European integration, theoretically serving as a key mechanism for regional economic convergence by allowing workers to move from areas of low opportunity to high demand. This article critically examines the complex and often contradictory role that labor mobility plays in practice, arguing that its impact on narrowing regional disparities within the European Union is highly contingent and frequently counterproductive. While neoclassical models posit migration as an automatic stabilizer, the European reality is characterized by significant barriers - linguistic, institutional, and housing-related - that limit its scale and efficiency. More critically, the selective nature of migration, which disproportionately draws the young and highly skilled from peripheral regions, creates a damaging brain drain. This human capital depletion erodes the long-term growth potential of sending areas, exacerbating existing inequalities. The analysis further contends that labor mobility can act as a substitute for capital mobility, reducing incentives for investment in less developed regions. Consequently, the article concludes that for labor mobility to fulfill its convergent potential, it must be embedded within a broader, cohesive policy framework that actively mitigates brain drain, fosters brain circulation, and strengthens the underlying economic attractiveness of Europe’s lagging regions.