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EU Enlargement, Migration, and Lessons from German Unification

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  • Sinn Hans-Werner

    (CESifo, Munich, Germany)

Abstract

The paper studies the role of international implications after EU enlargement. Based on a formal model with migration costs for both capital and labor, it predicts a two-sided migration from the new to the old EU countries which is later reversed. As the migration pattern chosen by market forces turns out to be efficient, migration should not be artificially reduced by means of legal constraints or subsidies to the new member countries. The paper draws the parallel with German unification and points out the lessons to be learned by Europe. The analysis concludes with a brief discussion of the second-best problem posed by the existence of welfare states in the old member countries.

Suggested Citation

  • Sinn Hans-Werner, 2000. "EU Enlargement, Migration, and Lessons from German Unification," German Economic Review, De Gruyter, vol. 1(3), pages 299-314, August.
    • Handle: RePEc:bpj:germec:v:1:y:2000:i:3:p:299-314
    DOI: 10.1111/1468-0475.00015
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    Cited by:

    1. Hannah Illing, 2023. "Crossing Borders: Labor Market Effects of European Integration," ECONtribute Discussion Papers Series 221, University of Bonn and University of Cologne, Germany.
    2. von Hagen, Jurgen & Strauch, Rolf, 2000. "East Germany: Transition With Unification - Experiments and Experiences," CEPR Discussion Papers 2386, C.E.P.R. Discussion Papers.
    3. Illing, Hannah, 2023. "Crossing Borders: Labor Market Effects of European Integration," IZA Discussion Papers 15930, Institute of Labor Economics (IZA).
    4. Sebastian Böhm, 2012. "The Effects of Factor Market Integration on the Macroeconomic Development in Unified Germany," DEGIT Conference Papers c017_023, DEGIT, Dynamics, Economic Growth, and International Trade.

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