Thomas Straubhaar

East-West migration: Will it be a problem?

How many will come? Thousands, millions? Does Europe need a new Iron Curtain? These questions dominate the ongoing negotiations on the eastward enlargement of the European Union. Western Europeans fear that the removal of barriers to migration would lead to a mass exodus of cheap(er) Eastern European workers from Eastern to Western Europe, which would place severe economic and political strains on the Western European target countries. And indeed, the East-West migration potential seems to be substantial. According to some guesstimates the migration flows from Central and Eastern to Western Europe could be up to 10 million people. Other assessments indicate more modest figures in the magnitude of about 4 million. Most of them (about 3 out of 5) would probably go to Germany.

Globalisation, internal labour markets and the migration of the highly skilled

Over the last decade highly skilled migration has been gaining relative importance in European migration flows. Following the goods and factor markets the market for highly skilled labour has thus also started to globalise. How are the globalisation processes of the world-wide goods, capital and labour markets interlinked? What role do international enterprises and their internal labour markets play in increasing highly skilled migration? What trends can be expected for the future?

Maastricht II: Are real convergence criteria needed?

In the run-up to the Intergovernmental Conference of the Member States of the EU in 1996, criticism of the convergence criteria laid down in the Maastricht Treaty selection and the scope left for interpretation is becoming ever vociferous. Will the shortcomings be rectified if, as demanded by the British Government in particular, the monetary and fiscal convergence criteria are complemented by real economic criteria?

Current issues in European migration

The pattern of migration into the EU and within the EU has changed greatly in recent years. Does this make it necessary to introduce a common European migration policy? How is the planned eastern enlargement of the EU to be seen against this background?

Zur Reform der Erbschaftsteuer: Handlungsbedarf nach dem Urteil des Bundesverfassungsgerichts

Thomas Straubhaar emphasizes that of course there are some good reasons to tax inheritances. However, there are many more much better reasons to free bequests from taxes. Taxing legacies reduces incentives to accumulate wealth. Consequently, it lowers the accumulation of capital and the long term perspectives for growth and welfare. Most importantly, it is an attack towards private property and therefore it attacks the fundaments of a capitalist economy and liberal society. According to Stefan Bach, Henriette Houben, Ralf Maiterth and Jürgen Schupp the inheritance and gift tax must be reformed fundamentally. Real estate and business property should be appraised according to the income approach. This better captures the real market values. However, assessment procedures might become more complex and controversial. A modest allowance for business property and a deferment of tax payments could mitigate sufficiently potential liquidity shortfalls in taking over a company. A higher appraisal of real estate and business property would imply an extra tax revenue of about one third. This should be used to reduce the tax rates if a revenue-neutral reform is to be achieved. By now, there is no empirical evidence of important economic drawbacks caused by the inheritance and gift taxation. Thus, a considerable reduction or even abolition of the tax is not at the agenda of German tax policy. Anette Reil-Held explains that inheritances in Germany happen only rarely, mostly consist of relatively small amounts and taxes are currently levied only to less than 10 percent of all cases. To evaluate an inheritance tax reform the economic implications have to be considered. I focus on the impact of inheritances on wealth accumulation and the distribution of wealth. The bequest motive for saving is much less important in Germany than saving for old-age provision or precautionary savings. Surprisingly, bequests seem more to even out the distribution of wealth than to lead to more concentration. However, a main argument in favour of inheritances is to create more equal opportunities. In view of the late age in which bequests are made it seems to be more appropriate to focus on education. For that purpose, one could let grandchildren inherit more free of inheritance taxes than children or to connect the age of the heir to the tax exemption.

Soziale Marktwirtschaft im Zeitalter der digitalisierten Globalisierung: was kann bleiben, was ist zu ändern?

Die Pfeiler des heutigen Sozialstaates wurden zu Zeiten Bismarcks im 19. Jahrhundert gesetzt. Der Ausbau erfolgte nach dem Zweiten Weltkrieg. Er ging einher mit einem Wirtschaftswunder, einem stark steigenden Wohlstand, einem Babyboom und einem Industriezeitalter mit arbeitsintensiver Fertigung.

Diversity Kompetenz und Wirtschaftlichkeit

Der Zusammenhang zwischen Diversitat und Wirtschaftlichkeit kann okonomisch sowohl positiv wie negativ sein. Entsprechend zeigen empirische Studien kein klares oder gar eindeutiges Ergebnis. Eher erweisen sich die makrookonomischen Effekte als stark zeit- und raumabhangig, und sie unterscheiden sich nach nationalem Konjunkturzyklus, Branche und unternehmensspezifischen Charakteristika. Auf der mikrookonomischen Ebene einzelner Betriebe zeigen sich allerdings eindeutig positive Effekte. Je diverser Firmen sind, umso innovativer erweisen sie sich. Die Diskrepanz zwischen makrookonomischer und betriebswirtschaftlicher Bewertung hilft zu verstehen, wieso unter gewissen Umstanden einzelne Branchen, Regionen oder Interessengruppen aus ihrer Betroffenheit heraus Vielfalt als eher schadlich als nutzlich bewerten – selbst wenn insgesamt die volkswirtschaftlichen Vorteile die Nachteile ubertreffen.

A Model for a Fiscal Union? What Europe Can Learn from the German Experience

The euro has strengthened the economic differences between a more affluent north and a struggling south, which is the core problem of the current crisis in the euro zone. A potential solution to this problem could be to transform the monetary union into a fiscal union. This article sketches two different models for fiscal unions: a federal structure like that of Germany, where federal revenues and expenditures are controlled in significant part by federals laws, which has an extensive bailout system built in; and a confederal system like that of Switzerland, where Cantons are autonomous in their fiscal policies but clear bankruptcy rules are implemented. The article describes the reasons for which the German arrangement, one that strongly relies on income equalisation, have not proven successful in harmonising the financial position of the Lander and municipalities and why bailouts have become rather the rule than the exception. In consequence Germany has introduced a debt brake that does not allow expenditures to be structurally higher than revenues. Although it is too early to evaluate the sustainability of such a mechanism yet, the debt brake seems to be a promising means for preventing an unsustainable built-up of debt under normal economic conditions. This article concludes that as long as debt brakes are not fully implemented and further fiscal harmonisation cannot be expected, the European Union will still have to rely on market-based regulatory instruments and the disciplinary function of interest rates, possibly culminating in a bankruptcy procedure.

Demographic Development: Not Really a Problem for Coming Generations

Michael Huther is pessimistic in his contribution (Chap. 3, this volume): A shrinking population leads to a loss in welfare and prospects. It is incompatible with the pursuit of intergenerational justice . He may be, but not necessarily, correct.

Zuwanderungspolitik: Antwort auf die Z-Frage dringender denn je

Zuwanderung: war da was? Im Herbst 2003 bestimmen doch ganz andere Themen die politische Tagesordnung in Deutschland. Endlich scheint es mit den so dringend notwendigen Reformen voranzugehen. So weit das Auge reicht, erkennt man emsige Aktivitat auf der Baustelle D. Die Hartz-Gesetze fur den Arbeitsmarkt, die Rurup-Kommission fur die nachhaltige Finanzierung der sozialen Sicherungssysteme, die Sanierung der Staatsfinanzen, der Gesundheitskompromiss und die Umsetzung der Agenda 2010 dominieren die aktuelle Diskussion. Wer hat da noch Muse oder fuhlt gar eine ausere Notwendigkeit, sich der Z-Frage zuzuwenden?