Abstract
<jats:title>Abstract</jats:title> <jats:p>Workers’ geographic mobility can balance differences across labor markets facing asymmetric shocks. However, not everybody moves. This chapter provides the first cross-country evidence on the differential mobility responses of foreigners and natives to regional economic shocks in Europe (2003–2017). Unlike prior studies, we decompose net migration into inflows and outflows and distinguish responses during economic expansions and recessions. We find that foreigners’ in-migration rates drive population dynamics and react strongly to rising unemployment, while natives remain largely immobile. Using an instrumental variable (IV) approach, we show that foreigners adjust to negative shocks by reducing inflows rather than increasing outflows but only during recessions. These findings highlight migration’s role in labor market adjustment and its cyclical nature, offering new insights into spatial economic resilience.</jats:p>