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EU Immigration Has Increased Germany’s Economic Growth

Author

Listed:
  • Marius Clemens
  • Janine Hart

Abstract

Immigration to Germany has increased significantly since 2011, primarily due to the immigration of citizens from other euro area countries and those which joined the EU in 2004 and 2007. This increase is mainly attributable to a lack of immigration barriers and the good economic situation on the German labor market compared to other European countries. Model simulations show that GDP growth in Germany between 2011 and 2016 would have been 0.2 percentage points lower on average per year without EU immigration. However, structural barriers to immigration remain. Additionally, due to economic recovery and demographic changes in other EU countries, migration from the EU may not continue as strongly as before. It is therefore important to strengthen immigration incentives, such as by giving immigrants more opportunities to find employment matching their skills. In addition to EU immigration, the German economy may also benefit from facilitating access to the labor market for skilled workers from third countries.

Suggested Citation

  • Marius Clemens & Janine Hart, 2018. "EU Immigration Has Increased Germany’s Economic Growth," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 8(44), pages 441-449.
  • Handle: RePEc:diw:diwdwr:dwr8-44-1
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.605819.de/dwr-18-44-1.pdf
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    More about this item

    Keywords

    Business Cycle; Migration; International Macroeconomics;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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