The New Face of Migration

www.ifo.de/w/pJXHtS4X
From an economic point of view there are very good reasons for the free movement of labour not only within a country, but also beyond its borders. Migration is positive for the economies involved in cases where it is triggered by differences in wages and productivity, but becomes biased if prompted by a government’s net transfers in the form of social welfare benefits, taxes and a freely available infrastructure.
At present demographic, economic and political developments in countries outside Europe is also causing higher levels of migration from these neighbouring regions to Europe, and especially to Germany. This may, in turn, lead to competitive bids to deter migration on the part of potential destination countries and erode their welfare states.