Employment policy and labor supply of foreign workers in the Federal Republic of Germany: a theoretical and empirical analysis.

Abstract

"This study is an attempt to investigate the economic determinants of international immigration and remigration into and out of the Federal Republic of Germany. Moreover, employment policy measures with respect to foreign workers are described and their impact on the inflow and outflow of guest workers [is] analyzed." The author notes that the ability of the government to influence migration flows through legislation is limited because of the free movement of labor within the Common Market countries. It is suggested that in-migration of foreign labor slows wage increases for the native worker, may retard rationalization, and increases the social costs of unemployment, particularly during periods of recession.