期刊名称：Dresden Discussion Paper Series in Economics / Dresden University of Technology, Faculty of Business Management and Economics
印刷版ISSN：0945-4829
出版年度：2009
卷号：1
出版社：Dresden
摘要：EU 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.
