Learn how you can benefit from labor mobility, the ability of workers to move between jobs, locations, or sectors. Discover the types, benefits, costs, and strategies of labor mobility.

Economics is about the efficient allocation of scarce resources. And while generally speaking labor is not a scarce resource in most countries, highly-skilled labor is. Hence, through labor mobility, people can access a wide pool of potential vacancies, this provides an opportunity for people to be hired in positions for which they are best suited. As without labor mobility, they would have had to settle for whatever positions are accessible to them and their advanced skills would have been an underutilized resource.

Immigration (especially of high-skilled labor) causes an increase in innovation, and therefore growth. Evidence: In the paper by Hunt and Gauthier-Loiselle (2010), they use patents as a proxy for innovation and they prove on an individual level that being an immigrant with a post-college STEM degree is associated with a higher probability (from 1% to 2.26%) of producing a patent. On the state level, the analysis concludes that an increase of 1% in college-educated migrants will lead to an increase in patents per capita between 9-18%. Another interesting paper on the topic is by Bernstein et al. (2019) where they prove that immigrants explain around 37% of total innovation, despite being only 16% of the inventors' workforce.

How can you benefit from labor mobility?

Labor mobility is the ability of workers to move between different jobs, locations, or sectors of the economy. It can have significant benefits for individuals, firms, and society as a whole. In this article, you will learn how you can take advantage of labor mobility to improve your career prospects, income, and well-being.

Key takeaways from this article

Leverage local job markets:

Researching the labor market in your desired area can reveal high-demand positions matching your skills. Use online platforms and networking to find these opportunities, increasing your chances of landing a well-suited job.### *Enhance employability through education:Investing in relevant training or certifications can make you more attractive to potential employers. This not only improves your skill set but also demonstrates commitment and expertise in your field.

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1 Types of labor mobility

Different types of labor mobility exist, depending on the nature and extent of the movement. Occupational mobility, for instance, involves changing your occupation or skill level within the same industry or sector. Geographical mobility refers to moving to a different place or region to accept or find a job, while sectoral mobility involves changing your industry or sector of employment. Each type has its own challenges and opportunities, considering the demand and supply of labor, the needed qualifications and skills, and the costs and benefits of moving.

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Todor Genchev

Data Analyst | Econ PhD candidate | Expert in Visualization & Project Management | Driving Business Innovation | DS & ML Practitioner
(edited)
Report contribution
Immigration (especially of high-skilled labor) causes an increase in innovation, and therefore growth. Evidence: In the paper by Hunt and Gauthier-Loiselle (2010), they use patents as a proxy for innovation and they prove on an individual level that being an immigrant with a post-college STEM degree is associated with a higher probability (from 1% to 2.26%) of producing a patent. On the state level, the analysis concludes that an increase of 1% in college-educated migrants will lead to an increase in patents per capita between 9-18%. Another interesting paper on the topic is by Bernstein et al. (2019) where they prove that immigrants explain around 37% of total innovation, despite being only 16% of the inventors' workforce.

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2 Benefits of labor mobility

Labor mobility can offer a variety of advantages, such as higher wages, better career opportunities, greater satisfaction, and more diversity. Moving to a job that pays more or matches your skills and preferences can increase your income and standard of living. Additionally, a job that offers more training, promotion, or learning opportunities can enhance your human capital and employability. Furthermore, relocating to a job that suits your personality, values, or interests can improve your motivation and engagement. Finally, relocating to a different location, industry, or sector enables you to experience different cultures, perspectives, and lifestyles and broaden your horizons.

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Dr. Noha Ghazy

Economics Lecturer at The British University in Egypt | LinkedIn Top Economics Voice
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Economics is about the efficient allocation of scarce resources. And while generally speaking labor is not a scarce resource in most countries, highly-skilled labor is. Hence, through labor mobility, people can access a wide pool of potential vacancies, this provides an opportunity for people to be hired in positions for which they are best suited. As without labor mobility, they would have had to settle for whatever positions are accessible to them and their advanced skills would have been an underutilized resource.

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3 Costs of labor mobility

Labor mobility can also involve some costs, such as relocation expenses, adjustment difficulties, loss of social ties, and skill mismatch. Moving to a new place can mean spending money on transportation, housing, utilities, and other necessities. Additionally, relocating to a new job can lead to facing unfamiliar tasks, environments, norms, and expectations, as well as coping with stress, uncertainty, and isolation. Furthermore, moving to a new place can involve leaving behind your family, friends, community, and support network and building new relationships. Finally, shifting to a new industry or sector can mean having skills that are not relevant or in demand or lacking skills that are needed or valued.

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4 Strategies for labor mobility

Weighing the costs and benefits of moving, and adopting strategies to overcome the barriers and challenges, are key for benefiting from labor mobility. Researching the labor market, updating your skills, seeking support, and being flexible are all important strategies to consider. Gather information about available jobs in your desired location, industry, or sector using online platforms, networks, or agencies. Invest in education, training, or certification to acquire or improve relevant skills. Seek support from family, friends, colleagues, or professionals to cope with the emotional, financial, and practical aspects of moving. And be prepared to learn, experiment, and adjust goals, expectations, and behavior as conditions change.

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5 Examples of labor mobility

Labor mobility is not a one-time event, but a continuous process that can occur at different stages of your career. For instance, if you are a fresh graduate looking to start your career in a competitive field, you can move to a city with more job openings and higher wages in your field. Additionally, you can enroll in an online course to upgrade your skills and network with potential employers. If you are a mid-career professional who feels stuck or bored in your current job, you could switch to a different industry or sector that offers more growth and innovation opportunities. Obtaining a certification is also an excellent way to demonstrate your competence and credibility in your new field. Lastly, if you are a senior worker who wants to retire or reduce your workload, you can move to a rural area or a different country that has a lower cost of living and a better quality of life. You can also volunteer or consult in a field that matches your passion and experience.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you benefit from labor mobility?

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1 Types of labor mobility

2 Benefits of labor mobility

3 Costs of labor mobility

4 Strategies for labor mobility

5 Examples of labor mobility

6 Here’s what else to consider

Economics

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How can you benefit from labor mobility?

1

2

3

4

5

6

1 Types of labor mobility

2 Benefits of labor mobility

3 Costs of labor mobility

4 Strategies for labor mobility

5 Examples of labor mobility

6 Here’s what else to consider

Economics

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