The paper deals with the effects of migration resulting from EU Eastern enlargement on the welfare states of Western Europe. Although migration is good in principle, as it yields gains from trade and specialization for all countries involved, it does so only if it meets with flexible labour...

The paper deals with the effects of migration resulting from EU Eastern enlargement on the welfare states of Western Europe. Although migration is good in principle, as it yields gains from trade and specialization for all countries involved, it does so only if it meets with flexible labour...

In seiner Rede beim 3. Munich Economic Summit am 18. Juni 2004 nahm Prof. Dr. Dr. h.c. Hans-Werner Sinn Stellung zur neuen EU-Freizügigkeitsrichtlinie. Er warnte vor einer Gefahr der Erosion des Sozialstaates, die durch die Freizügigkeit und volle soziale Inklusion entstehen werde....

This paper discusses how an industrialized country could defend the wages and social benefits of its unskilled workers against wage competition from immigrants. It shows that fixing social standards harms the workers and that fixing social replacement incomes implies migration into unemployment....