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EuroCrisisMove SIGNED

Fiscal Consolidation, Unemployment and Labour Mobility in the Euro Area

Total Cost €

0

EC-Contrib. €

0

Partnership

0

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 EuroCrisisMove project word cloud

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immigration    decision    primarily    model    unfavourable    implements    spain    cuts    policymakers    benefits    policies    core    tax    stochastic    deterioration    union    wage    labour    force    members    macroeconomic    surge    spending    periphery    unemployment    household    decreases    matching    bill    country    motivated    reduce    economic    contributed    move    consumption    government    equilibrium    direction    steep    search    allowances    abroad    levels    germany    welfare    economies    literature    notably    hit    income    policy    unemployed    prospects    instruments    greece    perform    fiscal    industrialised    systematic    outflows    channel    gap    links    monetary    immobile    triggered    decisions    sizeable    inform    frictions    public    restrictions    deficit    consolidation    socio    recruitments    area    peripheral    intensified    employed    fill    salaries    mix    lens    hikes    migration    involve    context    countries    introduce    aftermath    dynamic    career    mobility    world    employees    implications    crisis    endogenous   

Project "EuroCrisisMove" data sheet

The following table provides information about the project.

Coordinator
FUNDACIÓ MARKETS, ORGANIZATIONS AND VOTES IN ECONOMICS 

Organization address
address: CAMPUS DE BELLATERRA DE LA UNIVERSIDAD AUTONOMA DE BARCELONA SN EDIFICIO B
city: CERDANYOLA DEL VALLÈS
postcode: 8193
website: www.movebarcelona.eu

contact info
title: n.a.
name: n.a.
surname: n.a.
function: n.a.
email: n.a.
telephone: n.a.
fax: n.a.

 Coordinator Country Spain [ES]
 Total cost 170˙121 €
 EC max contribution 170˙121 € (100%)
 Programme 1. H2020-EU.1.3.2. (Nurturing excellence by means of cross-border and cross-sector mobility)
 Code Call H2020-MSCA-IF-2017
 Funding Scheme MSCA-IF-EF-ST
 Starting year 2018
 Duration (year-month-day) from 2018-09-01   to  2020-08-31

 Partnership

Take a look of project's partnership.

# participants  country  role  EC contrib. [€] 
1    FUNDACIÓ MARKETS, ORGANIZATIONS AND VOTES IN ECONOMICS ES (CERDANYOLA DEL VALLÈS) coordinator 170˙121.00

Map

 Project objective

In the aftermath of the crisis, unfavourable socio-economic conditions with high unemployment, steep decreases in salaries and welfare allowances, and deterioration in career prospects have triggered intensified labour mobility, with a direction from the so-called Peripheral countries to the Core of the euro area. Primarily due to the surge in immigration from its EU partners, Germany is now the second largest immigration country in the industrialised world, after the U.S. Fiscal consolidation policies that aim to reduce deficit levels and typically involve tax hikes and cuts in government spending have also contributed to these migration outflows from crisis-hit countries. Notably, in countries with a sizeable public sector, like Greece and Spain, cuts and restrictions in new recruitments of public employees have further motivated the decision to move abroad. The aim of this research is to theoretically study the macroeconomic links between unemployment, fiscal consolidation, and labour mobility in a monetary union. To this end, I will introduce endogenous migration decisions both for the unemployed and the employed household members in a two-country Dynamic Stochastic General Equilibrium model of a monetary union with search and matching frictions, in which the Periphery implements fiscal consolidation through spending cuts or tax hikes. Existing studies in the fiscal consolidation literature consider an immobile labour force and, therefore, the migration channel has not yet been investigated in this context. This project aims to fill this gap and inform policymakers by comparing different fiscal consolidation instruments: (a) labour income tax hikes, (b) public consumption spending cuts, (c) unemployment benefits cuts, and (d) public sector wage bill cuts. Through the lens of the model, I will also perform a systematic comparison of the implications for different euro area Peripheral economies, which have implemented a different policy mix in the recent years.

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The information about "EUROCRISISMOVE" are provided by the European Opendata Portal: CORDIS opendata.

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