What is Labour Market Integration?
A form of deep integration involving the removal of internal frontiers and border controls to allow for the free movement of workers and citizens. It aims to create a “single labour market” where labour factors compete internationally rather than locally, leading to world efficiency gains and factor price convergence
Cross-border Workers vs. Posted Workers
Cross-border workers reside in one country but work in another by regularly crossing the border. Posted workers are sent by their employer to work in another country for a limited, temporary period.
Immigrant-Native Gaps
The persistent differences in employment rates and earnings between non-Western European immigrants and native workers, often explained by language proficiency, cultural ties, or lack of occupational recognition
Pro-competitive Effect
The removal of trade barriers facilitates the entry of new firms and brands, increasing competition. This disciplines non-competitive markets (like monopolies), reduces profit margins, and lowers prices for consumers