In March 1996, the Bundestag introduced a minimum wage law for the German construction business in order to protect native workers from low wage competition by posted workers from other EU countries. This Entsendegesetz (Posted Workers Act) was backed formally by the EU Posted Workers Directive...

Based on the current European discussion about immigration policy, this paper gives an overview of central economic consequences of immigration for a host country's labor market. The most important theoretical arguments are presented and evaluated against the available empirical evidence. The...