Economic implications of migration into the Federal Republic of Germany, 1988-1992

"An analysis of the effects of the last wave of migration into West Germany on labor markets, public finances and economic growth, this study points at the often ignored fact that the migrants were rather successful in finding jobs and thus helped in eliminating labor shortages in certain industries. Simulations with a macroeconometric model for the FRG indicate that in 1992 the GDP was almost 6 percent higher than without migration, that 90,000 jobs were created and that migration created a surplus of DM14 billion in the public sector, compared to the baseline. This study also makes clear, however, that these effects mainly depend on a quick absorption of migrants by FRG labor markets, and as to the social system, the relief may be only transitory."