Working Paper: CEPR ID: DP641
Authors: Thomas Straubhaar; Klaus F. Zimmermann
Abstract: The stagnating West European population combined with the prosperous economic development of the European Community (EC) generate strong economic incentives for immigration. The drastic political changes in Eastern Europe generate emigration pressures. There are a variety of problems with economic and political integration of migrants. The paper argues that immigration can compensate for demographic losses due to the decline and ageing of the European labour force. Economic theory further predicts welfare gains from free factor movements, which should be reaped as long as social costs and adjustment costs are not prohibitive. An active European migration policy is recommended to achieve this aim.
Keywords: migration policy; east-west migration; economic benefits of migration
JEL Codes: F22; J11; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| immigration (F22) | labor market stability (J48) |
| immigration (F22) | economic benefits (D61) |
| economic growth (O49) | immigration (F22) |
| population decline (J11) | immigration (F22) |
| immigration (F22) | welfare gains (D69) |
| migration policy (F22) | economic benefits (D61) |