Does the implementation of the Schengen agreement boost cross-border commuting? Evidence from Switzerland

Event Date: 9 October 2019

Speaker: Cristina Tealdi, Heriot-Watt University

Location: Strathclyde Business School, Stenhouse Wing, SW204

Time: 4.15pm

Abstract: In this paper we study the effects of Switzerland implementing the Schengen agreement on cross-border commuting from neighbouring regions. As vehicles are allowed to cross borders without stopping and residents in border areas are granted freedom to cross borders away from fixed checkpoints, commuting costs are severely reduced. Using data from the European Labour Force Survey, we estimate that the individual probability to cross-border commute to Switzerland in response to this policy has increased by a factor in the range between 3 and 6 percentage points, according to different model specifications. Our result is particularly important due the meaningful policy implications, in a time in which the Schengen Agreement is under scrutiny and at risk of termination.

Published: 22 October 2019