1.   Because labour mobility between industries ensures that wage rates are equated in the two industries.

2.   Clearly the labour mobility programmes have transferred fewer workers than the number of jobs created by regional policies.

3.   Efficiency With labour mobility, inefficiency can arise from fiscal spending in different localities.

4.   Labour mobility programmes are in an important sense different for they provide aid to labour rather than to industry.

5.   This ties health insurance to employment, which impedes labour mobility and is unfair to the self-employed and unemployed.

6.   Lower labour mobility than elsewhere combines with this effect to keep salaries down and, crucially, to encourage a relatively high investment in training.

7.   With labour mobility, inefficiency can arise from fiscal spending in different localities.