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Migration in an Enlarged EU: A Challenging Solution?

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Five Years of an Enlarged EU

Abstract

The 2004 and 2007 enlargements of the European Union were unprecedented in a number of economic and policy aspects. This essay provides a broad and in-depth account of the effects of the post-enlargement migration flows on the receiving as well as sending countries in three broader areas: labour markets, welfare systems, and growth and competitiveness. Our analysis of the available literature and empirical evidence shows that (1) EU enlargement had a significant impact on migration flows from new to old Member States, (2) restrictions applied in some of the countries did not stop migrants from coming but changed the composition of the immigrants, (3) any negative effects in the labour market on wages or employment are hard to detect, (4) post-enlargement migration contributes to growth prospects of the EU, (5) these immigrants are strongly attached to the labour market, and (6) they are quite unlikely to be among welfare recipients. These findings point out the difficulties that restrictions on the free movement of workers bring about.

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Notes

  1. 1.

    Including the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia and Slovenia. EU-10 includes also Cyprus and Malta.

  2. 2.

    The old member states (EU-15) in the context of these enlargements include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.

  3. 3.

    Article 39 entitles nationals of one EU member state to work in another EU member state under the same conditions as that member state’s own citizens.

  4. 4.

    We cover the whole EU wherever possible and relevant, including Romania and Bulgaria as the most recent member states. While the 5 year period between 2004 and 2009 is the focus of the analysis, a broader time frame is called upon whenever necessary. The confounding effects of the ongoing financial and economic crisis, which began in 2007 in the US and spread to the global economy in 2008, are beyond the scope of this essay.

  5. 5.

    In the UK immigrants from the EU-8 have to register with the Home Office administered Worker Registration Scheme if they are employed in the UK for a month or more. This requirement allows the authorities to monitor immigration and its impact on the British labour market. In Ireland individual identification, Personal Public Service Numbers, is required in order to gain employment or access to state benefits and public services.

  6. 6.

    In Finland, Cyprus and Slovenia employment must subsequently be registered for monitoring purposes.

  7. 7.

    Kahanec and Zimmermann (2008, 2009) extensively summarise this literature and argue that migration potentially has important consequences for economic inequality, which are driven by the skill-composition of migrant flows.

  8. 8.

    The World Bank (2006) warns that increasing wages may generate inflation pressures.

  9. 9.

    See Borjas and Hilton (1996) and Hao and Kawano (2001) for evidence on the US. See also Wadensjö (2007) on immigrant inflows to Sweden.

  10. 10.

    The implied industrial structure has further repercussions for the adjustment capacity in the case of economic shocks.

  11. 11.

    Stark et al. (1986, 1988), Taylor (1992), Adams (1989, 1992), Lipton (1980), Stahl (1982), Barham and Boucher (1998), and McKenzie and Rapoport (2007).

  12. 12.

    We draw on Barrett and McCarthy (2008).

  13. 13.

    There is also evidence of substantial inflows of Polish migrants in Germany. See the section on Polish–German migration flows below.

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Acknowledgment

We thank Anzelika Zaiceva for providing us with invaluable data.

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Authors and Affiliations

  1. Institute for the Study of Labor, Bonn, Germany

    Martin Kahanec & Klaus F. Zimmermann

  2. Central European University, Budapest, Hungary

    Martin Kahanec

  3. Bonn University, Bonn, Germany

    Klaus F. Zimmermann

  4. DIW Berlin, Berlin, Germany

    Klaus F. Zimmermann

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  1. Martin Kahanec
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Correspondence to Martin Kahanec .

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    Filip Keereman

  2. , ECFIN.A - BU-1 03/209, European Commission, Brussels, 1049, Belgium

    Istvan Szekely

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Kahanec, M., Zimmermann, K.F. (2010). Migration in an Enlarged EU: A Challenging Solution?. In: Keereman, F., Szekely, I. (eds) Five Years of an Enlarged EU. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-12516-4_5

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