Özet:

One of the basic assumptions of the Economic Geography Approach, which has the spatial effects in the theories of economics and emphasizes the role of geography in international trade, is that labour is moving within and between regions. The mobility of the labour force determines the production structure, the direction and level of economic development by influencing the country’s population, the rate of participation in the labour force and the nature of the labour force. In the New Economic Geography Approach, the place of settlement preferences of the labour force are based on the wage differences between countries. However, the high wage alone is not enough to pull the labour force into the country. In addition to wages, the country’s socio-cultural structure is also influential when choosing among countries where wages are close to each other. The aim of this work is to be able to analyze the factors affecting the place of settlement of the labour force and thus to contribute to literature. In the study, the elements that determine the mobility of labour between the European Union countries were studied by panel data analysis using the smallest squares (EEC) and the Generalized Moments Method (GMM) in the framework of the New Economic Geography. Thus, it has been tried to figure out which countries of the labour force that play an important role in the formation of the production structure and why they prefer more.