Putty Capital and Clay Labor: Differing European Union Capital and Labor Freedom Speeds in Times of European Migration

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Putty Capital and Clay Labor:  Differing European Union Capital and Labor Freedom Speeds in Times of European Migration

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Abstract

Globalization has led to unprecedented risks stemming from global interconnectedness. Economic trade may distribute benefits of international exchange unevenly due to fundamental barriers of distance, national borders and implicit market segmentation. In order to equalize more equitable trade prosperity, the European Union (EU) 4 freedoms of goods, services, capital and labor were established by a neoliberal policy framework and the Eurozone featuring a common currency. While there is a vital central monetary union and since the 2008/09 World Financial Crisis a common European fiscal pact, EU free movement is limited regarding labor mobility. This paper is based on the idea that the asymmetry of the mobility of labor and capital leads to the risk of an uneven distribution of gains within the European Union towards some core states against the periphery. In the light of the current European migration, the following paper offers a forward-thinking perspective on potential emergent risks arising within the European Union due to an asymmetry between the mobility of labor on the one hand and capital and goods on the other in times of mass migration.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Julia M. Puaschunder. 2016. "Putty Capital and Clay Labor: Differing European Union Capital and Labor Freedom Speeds in Times of European Migration". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 16 (GJMBR Volume 16 Issue B4).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
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GJMBR-B Classification JEL Code: H29
Version of record

v1.2

Issue date
May 21, 2016

Language
English
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Putty Capital and Clay Labor: Differing European Union Capital and Labor Freedom Speeds in Times of European Migration

Julia Puaschunder
Julia Puaschunder The New School Department of Economics
Julia Puaschunder
Julia Puaschunder <p>The New School Department of Economics</p>