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10 Years After: EU Enlargement, Closed Borders, and Migration to Germany

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Author Info

  • Elsner, Benjamin

    ()
    (IZA)

  • Zimmermann, Klaus F.

    ()
    (IZA and University of Bonn)

Abstract

We study how the EU enlargement in 2004 and the Great Recession in the late 2000s have shaped the scale and composition of migration flows from the New Member States to Germany. We demonstrate that immigration increased substantially despite the restrictions on the German labor market, and that net flows decreased to zero at the outset of the recession. The cohorts arriving after 2004 had on average a lower education than the previous arrival cohort, but the wage gap compared to Germans became narrower over time. Almost 10 years after EU enlargement, we re-assess the transitional arrangements, and argue that Germany would have been better off, had it immediately opened its labor market. Finally, the Great recession allows us to study how effective migration within the EU is as an adjustment mechanism. Our data clearly show an increase in immigration from countries that were hit by the crisis, although the annual net flows are still too small to significantly reduce unemployment in the countries hit by the crisis.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7130.

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Length: 27 pages
Date of creation: Jan 2013
Date of revision:
Publication status: forthcoming in: Kahanec, M., and Zimmermann, K.F., 'Migration and the Great Recession: Adjustments in the Labour Market of an Enlarged European Community', 2014
Handle: RePEc:iza:izadps:dp7130

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Web page: http://www.iza.org

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Related research

Keywords: migration; EU enlargement; Germany;

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References

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  1. Ulf Rinne & Klaus Zimmermann, 2012. "Another economic miracle? The German labor market and the Great Recession," IZA Journal of Labor Policy, Springer, vol. 1(1), pages 1-21, December.
  2. Benjamin Elsner, 2011. "Emigration and Wages: The EU Enlargement Experiment," Working Papers 2011.76, Fondazione Eni Enrico Mattei.
  3. Elsner, Benjamin, 2012. "Does Emigration Benefit the Stayers? Evidence from EU Enlargement," IZA Discussion Papers 6843, Institute for the Study of Labor (IZA).
  4. Herbert Brücker & Elke J. Jahn, 2011. "Migration and Wage‐setting: Reassessing the Labor Market Effects of Migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113, pages 286-317, 06.
  5. Christian Dustmann & Tommaso Frattini & Caroline Halls, 2009. "Assessing the Fiscal Costs and Benefits of A8 Migration to the UK," CReAM Discussion Paper Series 0918, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Gianmarco I. P. Ottaviano & Francesco D’Amuri & Giovanni Peri, 2008. "The Labor Market Impact of Immigration in Western Germany in the 1990’s," Working Papers 2008.16, Fondazione Eni Enrico Mattei.
  7. Kahanec, Martin & Zimmermann, Klaus F., 2008. "International Migration, Ethnicity and Economic Inequality," IZA Discussion Papers 3450, Institute for the Study of Labor (IZA).
  8. Timo Baas & Herbert Brücker, 2012. "The macroeconomic consequences of migration diversion: evidence for Germany and the UK," Norface Discussion Paper Series 2012010, Norface Research Programme on Migration, Department of Economics, University College London.
  9. Brenke, Karl & Yuksel, Mutlu & Zimmermann, Klaus F., 2009. "EU Enlargement under Continued Mobility Restrictions: Consequences for the German Labor Market," CEPR Discussion Papers 7274, C.E.P.R. Discussion Papers.
  10. Piracha, Matloob & Vadean, Florin, 2012. "Migrant Educational Mismatch and the Labour Market," IZA Discussion Papers 6414, Institute for the Study of Labor (IZA).
  11. Constant, Amelie F. & Nottmeyer, Olga & Zimmermann, Klaus F., 2012. "The Economics of Circular Migration," IZA Discussion Papers 6940, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Jauer, Julia & Liebig, Thomas & Martin, John P. & Puhani, Patrick A., 2014. "Migration as an Adjustment Mechanism in the Crisis? A Comparison of Europe and the United States," IZA Discussion Papers 7921, Institute for the Study of Labor (IZA).
  2. Bertoli, Simone & Brücker, Herbert & Fernández-Huertas Moraga, Jesús, 2013. "The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows," IZA Discussion Papers 7170, Institute for the Study of Labor (IZA).
  3. Zimmermann, Klaus F., 2013. "The Mobility Challenge for Growth and Integration in Europe," IZA Policy Papers 69, Institute for the Study of Labor (IZA).

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