Eastern enlargement of the EU: jobs, investment and welfare in present member countries

Ben Heijdra (b.j.heijdra@rug.nl), Christian Keuschnigg and Wilhelm Kohler
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Wilhelm Kohler: Groningen University

No 200213, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: Eastern enlargement of the EU promises gains, but also imposes fiscal costs on incumbent countries. A sensitive issue concerns immigration, jobs and wages. We address these issues in a general equilibrium framework, both analytically and through numerical simulations. Analytical results identify capital accumulation as a prime transmission channel. Using a dynamic CGE model with search unemployment of high- and low-skilled labor, we simulate the effects of enlargement on Germany finding small effects from trade, but more pronounced labor market effects from migration. Based on German model elasticities, we approximate expected benefits and costs for other member countries as well.

Date: 2002
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Citations: View citations in EconPapers (24)

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Related works:
Chapter: Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries (2014)
Working Paper: Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries (2002)
Working Paper: Eastern enlargement of the EU: Jobs, investment and welfare in present member countries (2001)
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