Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22711
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dc.contributor.authorFuchs, Michaelaen_US
dc.contributor.authorThum, Marcelen_US
dc.date.accessioned2009-01-29T15:07:44Z-
dc.date.available2009-01-29T15:07:44Z-
dc.date.issued2004en_US
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 notcome automatically but have to be earned by appropriate adjustments in domestic policies. This is particularly relevantfor Germany's New Laender, which could benefit from the proximity to the new EU member states in Central andEastern Europe but which also suffer particularly from inefficient institutions in Germany. Welfare gains will only berealised 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 theNew Laender. The paper shows the potential benefits and risks of economic integration in a simple partial equilibriumsetting with flexible and rigid labour markets, respectively. We also discuss the entrepreneurial willingness and abilityin the New Laender to adjust to the changing competitive conditions after EU enlargement.en_US
dc.language.isoengen_US
dc.relation.ispartofseries|aDresden discussion paper in economics |x 07/04en_US
dc.subject.jelJ3en_US
dc.subject.jelH5en_US
dc.subject.jelF2en_US
dc.subject.ddc330en_US
dc.subject.keywordEU enlargementen_US
dc.subject.keywordlabour marketsen_US
dc.subject.stwEU-Erweiterungen_US
dc.subject.stwInternationaler Wettbewerben_US
dc.subject.stwKosten-Nutzen-Analyseen_US
dc.subject.stwArbeitsmarktflexibilisierungen_US
dc.subject.stwLohnrigiditäten_US
dc.subject.stwBeschäftigungseffekten_US
dc.subject.stwNeue Bundesländeren_US
dc.subject.stwOsteuropaen_US
dc.titleEU Enlargement : Challenges for Germany's New Laenderen_US
dc.typeWorking Paperen_US
dc.identifier.ppn393704955en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:tuddps:0704-

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