The impact of the international movement of labour: the case of western Europe with special reference to Germany

In: Migration and labour markets in the social sciences, S. 31-54

Abstract

"This paper highlights the weak economic situation that currently prevails in major parts of Western Europe; it also outlines the prerequisites that are needed to make Europe attractive for international labour mobility without making domestic workers more vulnerable. This is done in four sections. The second section sets the scene for Western Europe and discusses the challenges posed by greying Europe's poor performance on growth. Section 3 reviews various channels through which more labour mobility is trickling through the labour market. Special attention is given to different types of migration, for example, highly skilled versus low-skilled migration. Drawing on Germany's experiences in implementing a new immigration law from scratch, Section 4 generalises the pros and cons of different steering devices for influencing labour mobility; it shows that the net welfare effect of migration depends heavily on how increased labour mobility is organised. This question is of major relevance for how the eastward enlargement of the EU will affect the European labour market. Section 5 concludes by blending theoretical considerations with policy recommendations." (excerpt)