Eastern Enlargement of the EU: Jobs, Investment, and Welfare in Present Member Countries
Ben J. Heijdra,
Christian Keuschnigg,
Wilhelm Kohler
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… Show more
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