Central and East European Migrants’ Contributions to Social Protection PDF
Preview Central and East European Migrants’ Contributions to Social Protection
StudiesinEconomicTransition General Editors: Jens Hölscher, Reader in Economics, University of Brighton; and Horst Tomann,ProfessorofEconomics,FreeUniversityBerlin Thisserieshasbeenestablishedinresponsetoagrowingdemandforagreaterunderstanding ofthetransformationofeconomicsystems.Itbringstogethertheoreticalandempiricalstudies oneconomictransitionandeconomicdevelopment.Thepost-communisttransitionfrom plannedtomarketeconomiesisoneofthemainareasofappliedtheorybecauseinthisfield themostdramaticexamplesofchangeandeconomicdynamicscanbefound.Theseriesaims tocontributetotheunderstandingofspecificmajoreconomicchangesaswellastoadvance thetheoryofeconomicdevelopment.Theimplicationsofeconomicpolicywillbeamajor pointoffocus. Titlesinclude: TilmanBrukandHartmutLehmann(editors) INTHEGRIPOFTRANSITION EconomicandSocialConsequencesofRestructuringinRussiaandUkraine LucianCernat EUROPEANIZATION, VARIETIES OF CAPITALISM AND ECONOMIC PERFORMANCE IN CENTRALANDEASTERNEUROPE BrunoDallago(editor) TRANSFORMATIONANDEUROPEANINTEGRATION TheLocalDimension BrunoDallagoandIchiroIwasaki(editors) CORPORATERESTRUCTURINGANDGOVERNANCEINTRANSITIONECONOMIES HellaEngerer PRIVATIZATIONANDITSLIMITSINCENTRALANDEASTERNEUROPE PropertyRightsinTransition SaulEstrin,GrzegorzW.KolodkoandMilicaUvalic(editors) TRANSITIONANDBEYOND DanielaGabor CENTRALBANKINGANDFINANCIALIZATION ARomanianAccountofHowEasternEuropeBecameSubprime OlehHavrylyshyn DIVERGENTPATHSINPOST-COMMUNISTTRANSFORMATION CapitalismforAllorCapitalismfortheFew? IrajHoshi,PaulJ.J.WelfensandAnnaWziatek-Kubiak(editors) INDUSTRIALCOMPETITIVENESSANDRESTRUCTURINGINENLARGEDEUROPE HowAccessionCountriesCatchUpandIntegrateintheEuropeanUnion BjörnJindra INTERNATIONALISATIONTHEORYANDTECHNOLOGICALACCUMULATION AnInvestigationoftheMultinationalAffiliatesinEastGermany MihaelaKelemanandMonikaKostera(editors) CRITICALMANAGEMENTRESEARCHINEASTERNEUROPE ManagingtheTransition DavidLane(editor) THETRANSFORMATIONOFSTATESOCIALISM SystemChange,Capitalism,orSomethingElse? DavidLaneandMartinMyant(editors) VARIETIESOFCAPITALISMINPOST-COMMUNISTCOUNTRIES JensLowitzsch ECONOMICGROWTHANDSTRUCTURALFEATURESOFTRANSITION SönkeMaatsch FINANCIALPARTICIPATIONOFEMPLOYEESINTHEEU-27 EnricoMarelliandMarcelloSignorelli(editors) CENTRALANDEASTEUROPEANMIGRANTS’CONTRIBUTIONSTOSOCIALPROTECTION TomaszMickiewicz ECONOMICTRANSITIONINCENTRALEUROPEANDTHECOMMONWEALTHOF INDEPENDENTSTATES TomaszMickiewicz ECONOMICSOFINSTITUTIONALCHANGESECONDEDITION CentralandEasternEuropeRevisited MilanNikolic´ MONETARYPOLICYINTRANSITION InflationNexusMoneySupplyinPostcommunistRussia JuliePellegrin THEPOLITICALECONOMYOFCOMPETITIVENESSINANENLARGEDEUROPE StanislavPoloucek(editor) REFORMINGTHEFINANCIALSECTORINCENTRALEUROPEANCOUNTRIES JohannesStephan(editor) TECHNOLOGYTRANSFERVIAFOREIGNDIRECTINVESTMENTINCENTRALAND EASTERNEUROPE HorstTomann MONETARYINTEGRATIONINEUROPE PasqualeTridico INSTITUTIONS,HUMANDEVELOPMENTANDECONOMICGROWTHIN TRANSITIONECONOMIES MilicaUvalic SERBIA’STRANSITION TowardsaBetterFuture HansvanZon RUSSIA’SDEVELOPMENTPROBLEM TheCultofPower Thefulllistoftitlesavailableisonthewebsite: www.palgrave.com/economics/set.asp StudiesinEconomicTransition SeriesStandingOrderISBN9780–333–73353–0 (outsideNorthAmericaonly) Youcanreceivefuturetitlesinthisseriesastheyarepublishedbyplacingastandingorder. Pleasecontactyourbookselleror,incaseofdifficulty,writetousattheaddressbelowwith yournameandaddress,thetitleoftheseriesandtheISBNquotedabove. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, HampshireRG216XS,England Central and East European Migrants’ Contributions to Social Protection Sönke Maatsch UniversityofBremen,Germany ©SönkeMaatsch2013 Softcover reprint of the hardcover 1st edition 2013 978-0-230-35525-5 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noportionofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, SaffronHouse,6–10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorhasassertedhisrighttobeidentifiedastheauthorofthiswork inaccordancewiththeCopyright,DesignsandPatentsAct1988. Firstpublished2013by PALGRAVEMACMILLAN PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. PalgraveMacmillanintheUSisadivisionofStMartin’sPressLLC, 175FifthAvenue,NewYork,NY10010. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. Palgrave®andMacmillan®areregisteredtrademarksintheUnitedStates, theUnitedKingdom,Europeandothercountries ISBN 978-1-349-34695-0 ISBN 978-1-137-29581-1 (eBook) DOI 10.1057/9781137295811 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. AcatalogrecordforthisbookisavailablefromtheLibraryofCongress. 10 9 8 7 6 5 4 3 2 1 22 21 20 19 18 17 16 15 14 13 ToAleksandra This page intentionally left blank Contents ListofFigures xi ListofTables xii PrefaceandAcknowledgements xv ListofAbbreviations xvii Introduction 1 FearsofEast–Westmigrationintheoldmemberstates priortotheenlargements 1 East–Westmigrationflowsbetween2001and2010 2 Sixyearsafterthefirstenlargement:nodiscernibleimpact onsocialsecurityinWesternEurope 3 Resolvingthepuzzle 5 Structureofthebook 10 1 WhoMigrates?Theory,LessonsfromthePast,and LatestData 12 Themicroeconomictheoryofmigration 13 Immigrationintowelfarestates:theBorjasmodel 15 Positiveself-selection:thehumancapitalmodeland thebraindrain 17 Conclusionsfromthemicroeconomictheoryof migration:contextmatters 18 Lessonsfromthepast:patternsofmigrationinEurope untilthelate1980s 19 MassmigrationtoWesternEurope 20 MigrationpatternsinCentralandEasternEurope 25 The‘new’migration:East–Westmovementssincethelate 1980s 28 East–Westmigrationpriorto2004 29 Accelerationofmigrationafterthe2004enlargement 30 Explainingmigration:thecontributionandthelimitsof economictheory 32 2 AreWelfareStatesEndangeredbyMigration?The PerspectiveofEconomicTheory 36 Economicrationalesforredistribution 38 Pigouvianwelfareeconomics 39 vii viii Contents Redistributionasapublicgood 41 Medianvoter 44 Theimpactofmigration 45 Mobilerecipients 48 Mobiletaxbase 61 Majorityvotewithcontinuaofindividuals 69 Studiesofthenetfiscalimpactofimmigrants 78 Summaryoffindingsintheliterature 79 3 AModelofEUEastwardEnlargement 83 Distributionofhumancapitalandtax-settinginautarky 85 Theimpactofmigrationonhumancapitaldistributions 90 Impactofmigrationinthesendingcountry 92 Impactofmigrationinthedestinationcountry 92 Tax-settingandmigrationpolicy 94 Benchmarkcase:constrainingminimumhuman capitalrequirements 95 Non-constrainingbarrierstomigration 100 Proscriptionofmigrationbarriers 103 Lowwagesformigrants 104 Impactofwagegaponmigrationincentives 105 Optimalimmigrationwithwagegapinthe destinationcountry 105 Conclusion:redistributionin‘East’pronetobemost affected 106 4 EUSocialLegislationandNationalSocialPolicies 110 Generalprinciplesandprovisions 111 Freedomofmovement 111 Entitlementtosocialbenefits 112 RegulationsconcerningtheEasternenlargement 114 FreemovementforCEE-10citizensduringthe pre-accessionphase 114 Transitionalperiodforthefreedomofmovementof persons 115 ScopeoftheauthorisedderogationsfromtheTEC regardingthefreemovementofpersons 116 Overviewofredistributiveelementsinnationalsocial policies 119 Redistributiveelementsinsocialsecuritysystems 121 ComparisonoftheEUmemberstates’socialpolicies 123 SocialpoliciesintheEuropeanUnion:diversityprevails 125 Contents ix 5 Latestdata:WhatDoWeKnowaboutthe‘New Migration’? 129 Totalnumberofmigrantsbycountriesoforiginand destination 130 Pastforecastsofpost-enlargementmigration potentials 131 AnalysisofEast–WestmigrationflowsaftertheEU Eastwardenlargements 136 FutureEast–Westmigration–outlook 139 Qualificationsandagestructureofmigrants 140 Germany:refugees,ethnicGermans,andlabour migration 140 Ireland:immigrationasanewphenomenon 143 Labourmarketperformanceofmigrants 145 LabourmarketperformanceofCEEimmigrantsin Germany 148 LabourmarketperformanceofCEEimmigrantsin Ireland 157 6 NationalSocialPoliciesintheLightoftheEastern Enlargement 164 Publicpensions 165 Anoverlapping-generationsmodelofpensions 166 PublicpensionsinPolandandLithuania:emigration asa‘contributionsdrain’ 168 Germanpublicpensions:gainsfrommigration despitelowerearnings 172 Summary:impactofEast–Westmigrationonpublic pensions 178 Unemploymentbenefits 179 UnemploymentbenefitsinPoland:losingtwicefrom emigration 180 UnemploymentbenefitsinLatvia:redistributing betweenriskgroupsonly 183 CEEimmigrantsinGermany:highunemployment despitegoodqualifications 184 UnemploymentinsuranceinIreland:lowimmigrant wagesburdenfinancialbalance 186 Summaryofresults 187 Conclusions 190 Appendix1 MigrationData 195
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