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

  • Tim Krieger
  • Christoph Sauer

A major concern in Western Europe and especially in Germany is that inflows of workers will occur with the EU eastern enlargement, and they 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 shows 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 may the burden 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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Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.

Volume (Year): 124 (2004)
Issue (Month): 1 ()
Pages: 1-30

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Handle: RePEc:aeq:aeqsjb:v124_y2004_i1_q1_p1-30
Contact details of provider: Web page: http://www.duncker-humblot.de

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  1. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Report No. 3: 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).
  2. 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).
  3. 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.
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