Competitiveness of Germany and the Labour Market: A Migration Perspective
Andrej Privara
Keywords:
competitiveness, labour market, Nordic region, migration
Abstract:
The current paper contributes to the existing literature on migration by explaining the emigration
pattern from Denmark, Finland and Sweden to Germany. We have tried to discover the reason
why people migrate from high-income European Union (EU) member states to Germany, which
for a long time has hosted the highest number of migrants when compared to other EU member
states. We have employed gravity models using fixed effects and ordinary least squares estimation
for 1998 – 2019. Our results have indicated that Germany, compared to other EU member states,
is more competitive in terms of its labour market efficiency. Germany is an attractive destination
for migrants from Denmark, Finland and Sweden in terms of its employment rate, wages and
effective government support of its labour force programmes. The current research provides
insights into enhancing German competitiveness in terms of labour market factors, which is
important for both the migrant and native populations. The results show that if wisely managed,
the labour market attracts the labour force, which can address critical social issues Europe is
currently facing. In particular, competition issues for high-skilled workers, an aging population,
and a low birth rate. The study indicates that the long-term attractiveness of Germany for
migrants is based on the efficient participation of the government in labour management-related
decisions.
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 Competitiveness of Germany and the Labour Market: A Migration Perspective [PDF file] [Filesize: 1.4 MB]
 10.7441/joc.2022.02.07
Privara, A. (2022). Competitiveness of Germany and the Labour Market: A Migration Perspective.
Journal of Competitiveness, 14(2), 116–134. https://doi.org/10.7441/joc.2022.02.07
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