Will Eastern European Migrants Happily Enter the German Pension System after the EU Eastern Enlargement?
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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Volume (Year): 124 (2004)
Issue (Month): 1 ()
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