Abstract

This inquiry considers some effects of migration on the labour markets and the welfare systems found in the EU-15, and from the perspectives of sustainability of the current welfare state regimes. Our inquiry aims to determine whether and to what extent different approaches in regulation of migration flows between the new and old member states are compatible with related economic and demographic findings. Within this context, our research considers regulations affecting migration flows. Our findings suggest that some effects of migration from the EU8+2 on the labour markets and social protection systems found in the EU-15, both with respect to level and structure, do indeed generate effects on migration, especially considering whether migration is based upon economic or welfare decisions. In addition, our inquiry considers perspectives upon restrictive versus liberal migration policies.

Highlights

  • Data on migration flows from the New Member States (NMS) to the European Union (EU)-15 suggest that the fears regarding the great influx of workers from the Eastern regions, after the EU 2004 and 2007 enlargements were exaggerated

  • It should determine whether and to what extent there is the convergence or divergence in the labor market indicators and the welfare state, in the EU-8+2 countries compared to the average of the EU-15, essential for decision making about immigration

  • Experiences with migration flows from EU-8+2 in the EU-15 suggest that the convergence of net earnings and social spending towards higher levels in the countries of emigration has a strong influence on the immigration regimes in countries of immigration

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Summary

Review of the Selected Viewpoints in the Literature

Some dimensions of these questions have been considered in the research that examines links between migration and welfare states, and the structural nature of the current crisis of public finance most European economies face (see, for example, Kosta Josifidis, Alpar Lošonc, and Novica Supić 2010). By using as examples the EU-8 countries, on the one hand, and Great Britain and Ireland, on the other, Kureková (2010) points to the inability of neoclassical migration theory to explain the considerable variation of the immigration rates of workers from countries with similar levels of living standards and wages This challenge gives rise to the need for the development of new approaches for the study of migrations from the countries of Central, Eastern South-Eastern Europe into the higher per capita income countries found in the EU of Western Europe. By relying upon a VEC model, research findings of Joan Muysken and Thomas Ziesemer (2011), have shown that the Netherlands (from 1973 to 2009) offers an example of the positive impacts of migration flows on the age structure of this country over time Their findings suggest that immigrants were able to achieve at least the same rate of labour force participation as the domestic population. The contribution to the economic growth depends on the education level of immigrants, and especially their willingness to attain yet higher levels of education

Institutions and Bounded Rationality
Empirical Evidence
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