ABSTRACT
Under certain conditions, the creation of a common market entails movements of labour which in turn have a levelling effect on the price of labour. In this chapter, the author describes how these two phenomena have taken shape in practice with the integration of the labour markets of the European Union (EU) member countries. He discusses the few basic concepts, such as the definition and specification of barriers to movement and the forms and advantages of integration. The author also describes the exchange of labour among member states through international migration. He turns to the development of the price of labour under the influence of integration. After a theoretical treatment of the question the author examines with empirical data how far wages in the member states of the EU have actually adjusted to the new conditions. He aims to indicate both in a theoretical and an empirical way the welfare effects of migration.
