Beyond the Anwerbestopp? The German-Polish Labor Treaty

This article analyses the genesis, implementation and effects of the bilateral labour treaties between Germany and Central and Eastern Europe, focussing on the Polish–German Treaty and the construction sector. These treaties represent a significant departure from the restrictive German and European Union immigration policy. First, the political motives of the Polish and German governments are examined. The overall German ambition was to temporarily recruit labour migrants, reminiscent of the 1960s Gastarbeiter policy. Second, the treaty's labour markets effects are analysed using concepts from the migration literature. The formerly unified German labour market is disaggregating into three tiers with substantial wage differences, reinforced by powerful push–pull factors and counter-productive re-regulation. The effects on the Polish labour market are small, if unfavourable. Third, the implications of the Treaty for the German labour market include the possibility that employers can now import labour instead of outsourcing production in the geographically static service sector. Finally, the implications of EU eastward enlargement are examined.