Geoscience Reference
In-Depth Information
DK
Aus
Neth
Bel
Neth
Swe
Fin
Aus
Hun
Ger
UK
SP
Swe
DK
Ire
UK
Fr
Czech R
Bel
Mal
IT
IT
Fr
Ger
Esto
Port
Slov
Mal
Czech R
Lith
Port
Sp
Latv
PoL
Fin
Hun
Gre
Slov
Slov
Gre
Esto
Lith
PoL
Sp
Ire
Latv
100
0
100
Net Budgetary Balance per capita
200
300
400
100
0
100
Net Budgetary Balance per capita
200
300
400
FIGURE 4.10. Interregional Redistribution and Mobility in the EU: 1990-2003.
concerned the limitation of negative economic externalities within an increas-
ingly heterogeneous Union. Throughout the Union's history, measures to bridge
the economic gap between poor and rich regions, and thereby limit (among
other things) undesired population flows, have been adopted prior to grant-
ing full mobility rights to workers and dependents from newly incorporated
areas. As a result, to the extent that they succeed in limiting mobility from
areas receiving the funds to areas providing the funds, there should be a clear
negative relationship between the amount of resources received by a particular
member state and the level of mobility out of that same state.
Figure 4.10 presents evidence on the scope of the insurance role I attribute to
the Common Agricultural Policy and the Structural and Cohesion Funds. The
data build on a statistical analysis of the determinants of two mobility rates: the
internal mobility rate, the share of the population that moved geographically
within the country; and the outward mobility rate, the share of the population
that moved to other EU countries. 25
Clearly, over the period 1990-2003, interregional redistribution in the
Union has been very effective in reducing the levels of population mobility
in the Union. It is worth recalling that interregional transfers are targeted to
regions in need within recipient countries. The left panel shows the relationship
between redistribution and the internal mobility rate, that is to say, population
movements from one region to another within the recipient nation. In turn,
the right panel shows the relationship between the former and the levels of
25 Mobility data from EUROSTAT (see Appendix B). Net budgetary balance per capita is defined
as the difference between what countries contribute and what countries receive from the Euro-
pean Union, weighted by population size. The relationship reported in Figure 4.10 is controlled
for the level of economic growth, the level of inequality, the share of retired population and
the unemployment rate in the countries being compared. An annual panel data analysis for
the period 1990-2003 yields substantively similar conclusions about the relationship between
horizontal redistribution and mobility in the European Union.
 
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