What is the impact of economic integration on labour mobility?

Economic integration generally enhances labour mobility, allowing workers to move more freely between different regions or countries.

Economic integration, whether it's in the form of free trade areas, customs unions, common markets, or economic unions, tends to have a significant impact on labour mobility. This is primarily because one of the key objectives of economic integration is to remove barriers to trade and movement, including those that apply to labour.

In a fully integrated economy, workers are free to move to where their skills are most in demand, and where they can earn the highest wages. This can lead to a more efficient allocation of resources, as labour is a key factor of production. For example, if a country has a surplus of engineers but a shortage of teachers, economic integration could allow engineers to move to countries where their skills are in demand, while teachers could move in the opposite direction.

Moreover, economic integration can also lead to increased competition among workers, which can drive up productivity and innovation. Workers may be motivated to improve their skills and qualifications in order to compete effectively in a larger, integrated labour market. This can lead to overall economic growth and development.

However, it's important to note that while economic integration can enhance labour mobility, it doesn't guarantee it. Other factors, such as language barriers, cultural differences, and immigration policies, can still limit the movement of workers. Furthermore, increased labour mobility can also lead to brain drain, where highly skilled workers leave their home country for better opportunities elsewhere, potentially leading to a shortage of skilled labour in their home country.

In conclusion, economic integration can have a significant impact on labour mobility, potentially leading to a more efficient allocation of resources, increased competition, and overall economic growth. However, it's also important to consider the potential downsides, such as brain drain and the impact on workers who may face increased competition.