Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/22711 
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dc.contributor.authorFuchs, Michaelaen
dc.contributor.authorThum, Marcelen
dc.date.accessioned2009-01-29T15:07:44Z-
dc.date.available2009-01-29T15:07:44Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/22711-
dc.description.abstractEU enlargement offers significant welfare gains to old and new member states. However, these welfare gains do not come automatically but have to be earned by appropriate adjustments in domestic policies. This is particularly relevant for Germany's New Laender, which could benefit from the proximity to the new EU member states in Central and Eastern Europe but which also suffer particularly from inefficient institutions in Germany. Welfare gains will only be realised if wage adjustment is flexible. Instead, the German welfare system implicitly creates downward rigid wages. Without appropriate social policy reforms, the competitive pressure and the mobility of capital will destroy jobs in the New Laender. The paper shows the potential benefits and risks of economic integration in a simple partial equilibrium setting with flexible and rigid labour markets, respectively. We also discuss the entrepreneurial willingness and ability in the New Laender to adjust to the changing competitive conditions after EU enlargement.en
dc.language.isoengen
dc.publisher|aTechnische Universität Dresden, Fakultät Wirtschaftswissenschaften |cDresdenen
dc.relation.ispartofseries|aDresden Discussion Paper Series in Economics |x07/04en
dc.subject.jelJ3en
dc.subject.jelH5en
dc.subject.jelF2en
dc.subject.ddc330en
dc.subject.keywordEU enlargementen
dc.subject.keywordlabour marketsen
dc.subject.stwEU-Erweiterungen
dc.subject.stwInternationaler Wettbewerben
dc.subject.stwKosten-Nutzen-Analyseen
dc.subject.stwArbeitsmarktflexibilisierungen
dc.subject.stwLohnrigiditäten
dc.subject.stwBeschäftigungseffekten
dc.subject.stwNeue Bundesländeren
dc.subject.stwOsteuropaen
dc.titleEU Enlargement : Challenges for Germany's New Laender-
dc.typeWorking Paperen
dc.identifier.ppn393704955en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:tuddps:0704en

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