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Will Eastern European Migrants Happily Enter the German Pension System after the EU Eastern Enlargement?

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Author Info
Tim Krieger () (Ludwig-Maximilians-Universität München)
Christoph Sauer () (Department of Economics, University of Goettingen)

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Abstract

A major concern in Western Europe and especially in Germany is that with the EU eastern enlargement inflows of workers occur, which will be net beneficiaries of the domestic social security systems. We introduce a model and present evidence by comparing pension systems in the main source and target countries (Poland, Hungary, Czech Republic; Germany) that show that immigrants most likely have to face a burden from entering the German pension system. Only if the total number of immigrants is sufficiently large the burden may change into a gain. We conclude that if migration takes place, it will do so despite – not because of – the existence of the pension systems.

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File URL: http://www2.vwl.wiso.uni-goettingen.de/departmentpaper/NO_118.pdf
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Publisher Info
Paper provided by University of Goettingen, Department of Economics in its series Departmental Discussion Papers with number 118.

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Length: 31
Date of creation: 01 May 2003
Date of revision:
Handle: RePEc:got:vwldps:118

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Related research
Keywords: German Pension System; EU Eastern Enlargement;

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Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
F15 - International Economics - - Trade - - - Economic Integration
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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References listed on IDEAS
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. Börsch-Supan, Axel & Reil-Held, Anette & Schnabel, Reinhold, 1998. "Pension Provision in Germany," Sonderforschungsbereich 504 Publications 98-07, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
  2. Thomas Bauer & Klaus F. Zimmermann, 1999. "Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Bonin, Holger, 2001. "Will it Last? An Assessment of the 2001 German Pension Reform," IZA Discussion Papers 343, Institute for the Study of Labor (IZA). [Downloadable!]
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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. Corinna Ahlfeld, . "The scapegoat of heterogeneity - How fragmentation influences political decisionmaking," Departmental Discussion Papers 143, University of Goettingen, Department of Economics. [Downloadable!]
  2. Tim Krieger, 2004. "Public pensions and immigration policy when voters are differently skilled," Public Economics 0411006, EconWPA. [Downloadable!]
  3. Guisan, Maria-Carmen & Aguayo, Eva & Carballas, David, 2004. "Economic Growth and Cycles in Poland, Hungary, Czech Republic, Slovakia and Slovenia: A comparison with Spain, Austria and other EU countries, 1950-2002," Economic Development 79, University of Santiago de Compostela. Faculty of Economics and Business. Econometrics.. [Downloadable!]
  4. Renate Ohr, . "European Monetary Union at Ten: Had the German Maastricht Critics Been Wrong?," Departmental Discussion Papers 141, University of Goettingen, Department of Economics. [Downloadable!]
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