EU Enlargement, Migration, and Lessons from German Unification
The paper studies the role of international implications after EU enlargement. Based on a formal model with migration costs for both capital and labor, it predicts a two-sided migration from the new to the old EU countries which is later reversed. As the migration pattern chosen by market forces turns out to be effici e nt, migration should not be artificially reduced by means of legal constraints or subsidies to the new member countries. The paper draws the parallel with German unification and points out the lessons to be learned by Europe. The analysis concludes with a brief discussion of the second best problem posed by the existence of welfare states in the old member countries.
|Date of creation:||1999|
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- Burda, Michael & Wyplosz, Charles, 1992.
"Human capital, investment and migration in an integrated Europe,"
European Economic Review,
Elsevier, vol. 36(2-3), pages 677-684, April.
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"Tax Harmonization and Tax Competition in Europe,"
NBER Working Papers
3248, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 1988. "The Sahel Problem," Kyklos, Wiley Blackwell, vol. 41(2), pages 187-213.
- Abel, Andrew B & Blanchard, Olivier J, 1983.
"An Intertemporal Model of Saving and Investment,"
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- Sinn, Gerlinde & Sinn, Hans-Werner, 1992. "Kaltstart. Volkswirtschaftliche Aspekte der Deutschen Vereinigung," Monograph, Mohr Siebeck, Tübingen, edition 2, number urn:isbn:9783161459429, May.
- Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-74, September.
- Glytsos, Nicholas & Katseli, Louka Tarsitsa, 1986. "Theoretical and Empirical Determinants of International Labour Mobility: A Greek-German Perspective," CEPR Discussion Papers 148, C.E.P.R. Discussion Papers.
- Harry Coccossis & Peter Nijkamp, 2007. "Regional Science in Perspective," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2007(2), pages 137-140.
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