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GTAP Resource #3058

"Turkey and the EU: Economic Integration and Labour Migration"
by McDonald, Scott, Yontem Sonmez and Karen Thierfelder

The EU’s fifth enlargement process induced substantial labour migration from accession states – mostly eastern European – into the states of the EU15. In response, a number of EU15 states took steps to limit in migration of labour because of fears about the potential political and economic consequences of increased competition in domestic labour markets. Since the fifth enlargement, the EU has embarked upon negotiations about Turkey’s possible accession to the EU; a process that has raised fears about a possible influx of Turkish workers into EU27.
Turkish labour migration to Western Europe, especially to Germany, started in the early 1960s when Turkish workers migrated to Western Europe as Gastarbeiter. This Turkish labour migration accelerated, following the workforce agreement with Germany and the Association Agreement with the EC. Since then, over a million Turkish workers have migrated to the Western Europe for employment, with almost 70% migrating to Germany. The use of Turkish migrant workers was conceived by the German government as a temporary measure to deal with the chronic labour shortage, providing cheap and flexible labour. However, over time these temporary arrangements developed into permanent ones. The initial phase was followed by the second one, encompassing family reunification, politically motivated migration and (inevitably) illegal labour migration. Hence, the Gastarbeiter never went back and more followed; Gastarbeiter developed into the Inlander auslandischer Herkunft .
This paper reports an analysis of the economy wide effects of changes in both labour migration from Turkey to EU and labour remittances to Turkey by migrant workers. Migrations decisions are endogenising through labour supply functions that respond to changes in the relative wages in EU regions. Due to the past migration patterns and volumes of Turkish Gastarbeiter , the analyses focus on labour migration to Germany and the economic implications for Turkey and Germany.

Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Version: 1
Created: Sonmez, Y. (4/15/2009)
Updated: Sonmez, Y. (6/14/2009)
Visits: 2,547
- Preferential trading arrangements
- Labor market issues
- European Union

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