Free Movement of Workers in the Eu Essay

2973 Words Jun 16th, 2012 12 Pages
Table of Contents

1. Introduction 1
2. Free Movement of Workers within the European Union 1
2.1 Historical and legal background 1
2.2 What are advantages and disadvantages of restrictions? 2
2.3 Why do people believe that immigrants from other European countries are willing to work for lower wages? 4
2.4 Advantages and disadvantages of immigration in Western EU countries 5 2.4.1 What are the advantages and disadvantages of companies? 6 2.4.2 How are domestic workers affected by foreign workers? 7 2.4.3 What are the motives for immigration to Western welfare states? 8
3. Conclusion 9

The freedom of movement of workers without restrictions within the European Union has existed since 1986 when the
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There are large differences between the wages of European countries, in particular between the old and the new member states of the European Union. Statistics of minimum wages of 2011 show that on the one hand, Luxemburg and Ireland have the highest minimum wages with € 1757,56 and € 1 461,85. In contrast to that, Spain and Portugal have the lowest minimum wages across the old members with € 748,30 and € 565,83. On the other hand, regarding the new members of 2004 and 2007, Slovenia and Malta have the highest minimum wages with € 748,10 and € 664,95 and Romania and Bulgaria have the lowest minimum wages with € 157,20 and € 122,71.

Denmark, Germany, Italy, Austria, Finland, Sweden, Iceland, Norway, Switzerland, and Cyprus are not mentioned in the statistics because in these countries there are no official minimum wages, but in some of them there exist collective bargaining agreements (Eurostat, 2011).

So, the higher the wage differences between the host country of a person and the home country are, the higher is the probability that people migrate to another country. Although this fact must lead to very high immigration rates, it also needs to be considered that there is a high number of temporary migrants (Dustmann, 2003, p. 353 f.).

At the beginning of the migration most immigrants earn less than natives because they often suffer from a lack of language skills and are unfamiliar with work processes and reward

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