The EU Directive on Free Movement of 2004 extended free movement within the EU to Union citizens who are inactive and gave them access to the welfare benefits of host countries. The paper examines the extent to which these measures provoke migration to those countries with the highest levels of welfare benefits. The paper concludes that migration is limited by the requirement of considerable financial assets in order to bridge a waiting period of five years as well as negative financial incentives. On the other hand, migration is attractive for those working in the informal sector of host countries.
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Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1930.
Find related papers by JEL classification: I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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