The economic costs of out-migration from Germany

Beatrice Knerr, University of Kassel

Germany, for decades known as a country of large-scale in-migration of labour force, is increasingly turning into a country of out-migration. Since the mid-1990ies, its economy is between crisis and slow growth, and unemployment has become prevalent. Joblessness, insecurity, and worsening working conditions induce Germans as well as previously in-migrated foreigners to look for better chances abroad. Although the share of out-migrants in total labour force does not appear alarming, and somehow as a relief to the labour market, its composition and perspectives increasingly threaten Germany’s economy, as scarce high-potentials display an over proportional propensity to leave. This is not counterbalanced by an adequate inflow of qualified labour force. Lack of competent labour force might have already handicapped the German economy, which is in need of fresh stimuli. The research presented contributes to filling an existing gap in research about this new phenomenon by quantifying its costs to the German economy.