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EU Enlargement, Migration, and Lessons from German Unification

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Author Info
Hans-Werner Sinn ()

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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 effici e nt, 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.

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File URL: http://www.cesifo-group.de/DocCIDL/WP182.PDF
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Publisher Info
Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number CESifo Working Paper No. 182.

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Date of creation: 1999
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Handle: RePEc:ces:ceswps:_182

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Related research
Keywords: EU enlargement migration welfare state

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Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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  1. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-74, September. [Downloadable!] (restricted)
  2. Sinn, Hans-Werner, 1990. "Tax harmonization and tax competition in Europe," European Economic Review, Elsevier, vol. 34(2-3), pages 489-504, May. [Downloadable!] (restricted)
    Other versions:
  3. Sinn, Hans-Werner, 1988. "The Sahel Problem," Kyklos, Blackwell Publishing, vol. 41(2), pages 187-213.
  4. Sinn, Gerlinde & Sinn, Hans-Werner, 1992. "Kaltstart. Volkswirtschaftliche Aspekte der Deutschen Vereinigung," Monograph, Mohr Siebeck, Tübingen, edition 2, number urn:isbn:9783161459429, December.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jan Fidrmuc, 2002. "Migration and Regional Adjustment and Asymmetric Shocks in Transition Economies," William Davidson Institute Working Papers Series 441, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. Hans-Werner Sinn, 2001. "Social Dumping in the Transformation Process?," NBER Working Papers 8364, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Christoph M. Schmidt & Michael Fertig, 2002. "Mobility within Europe – The Attitudes of European Youngsters," RWI Discussion Papers 0001, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
  4. John P Haisken-DeNew & Christoph M. Schmidt & Thomas Bauer, 2004. "International Labor Migration, Economic Growth and Labor Markets – The Current State of Affairs," RWI Discussion Papers 0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
  5. Sinn, Hans-Werner, 2000. "Germany's Economic Unification. An Assessment after Ten Years," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  6. Jörg Bibow, 2001. "On the 'Burden' of German Unification: The Economic Consequences of Messrs. Waigel and Tietmeyer," Macroeconomics 0106004, EconWPA. [Downloadable!]
  7. Renzo Orsi & Katarzyna Zukrowska, 2004. "Policy Advice: Markets and Policies," Eastward Enlargement of the Euro-zone Working Papers wp20, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Feb 2004. [Downloadable!]
  8. Belke, Ansgar & Göcke, Matthias & Hebler, Martin, 2004. "Institutional Uncertainty and European Social Union: Impacts on Job Creation and Destruction in the CEECs," IZA Discussion Papers 1039, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Nikolay Nenovsky & Kalina Dimitrova, 2002. "Dual Inflation Under the Currency Board: The Challenges of Bulgarian EU Accession," William Davidson Institute Working Papers Series 487, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  10. Achim Kemmerling, 2003. "Regional Input on the Social Dimension of Ezoneplus: Belgium, The Netherlands, France, Austria, and Germany," Eastward Enlargement of the Euro-zone Working Papers wp13c, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Mar 2003. [Downloadable!]
  11. Giacomo De Giorgi & Michele Pellizzari, 2006. "Welfare Migration in Europe and the Cost of a Harmonised Social Assistance," IZA Discussion Papers 2094, Institute for the Study of Labor (IZA). [Downloadable!]
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