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Welfare State and Labor Mobility: The Impact of Bismarck's Social Legislation on German Emigration before World War I

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  • KHOUDOUR-CASTÉRAS, DAVID

Abstract

The rapid decline of German emigration before World War I constitutes a puzzle that traditional explanations have difficulty in solving. The article shows that the social legislation implemented by Bismarck during the 1880s—the most developed at the time—played a key role in this process. Indeed, candidates for migration considered not only the gap between “direct wages” (labor earnings) in the United States and Germany, but also the differential in “indirect wages,” that is, social benefits. In that way, Bismarck's insurance system partly offset low wage rates in Germany and furthered the fall of the emigration rate.O sprecht! warum zogt ihr von dannen?Das Neckartal hat Wein und Korn;Der Schwarzwald steht voll finstrer Tannen,Im Spessart klingt des Ålplers Horn.Wie wird es in den fremden WäldernEuch nach der Heimatberge Grün,Nach Deutschlands gelben Weizenfeldern,Nach seinen Rebenhügeln ziehn!Ferdinand Freiligrath1

Suggested Citation

  • Khoudour-Castéras, David, 2008. "Welfare State and Labor Mobility: The Impact of Bismarck's Social Legislation on German Emigration before World War I," The Journal of Economic History, Cambridge University Press, vol. 68(1), pages 211-243, March.
    • Handle: RePEc:cup:jechis:v:68:y:2008:i:01:p:211-243_00
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    Cited by:

    1. Assaf Razin, 2013. "MIGRATION into the WELFARE STATE: tax and migration competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(4), pages 548-563, August.
    2. Razin, Assaf & Schwemmer, Alexander, 2020. "Ageing-Driven Migration and Redistribution: Comparing Policy Regimes," CEPR Discussion Papers 14574, C.E.P.R. Discussion Papers.
    3. Charpe, Matthieu & Flaschel, Peter & Hartmann, Florian & Malikane, Christopher, 2014. "Segmented Labor Markets and the Distributive Cycle: A Roadmap towards Inclusive Growth," MPRA Paper 62832, University Library of Munich, Germany.
    4. Timothy W. Guinnane & Jochen Streb, 2021. "The Introduction of Bismarck's Social Security System and its Effects on Marriage and Fertility in Prussia," Population and Development Review, The Population Council, Inc., vol. 47(3), pages 749-780, September.
    5. Felix Kersting, 2022. "Welfare Reform and Repression in an Autocracy: Bismarck and the Socialists," Working Papers 0227, European Historical Economics Society (EHES).
    6. Jopp, Tobias Alexander, 2010. "The welfare state evolves: German Knappschaften, 1854 - 1923," FZID Discussion Papers 16-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    7. Guinnane, Timothy W. & Marrinez Rodriguez, Susana, 2012. "For Every Law, a Loophole: Flexibility in the Menu of Spanish Business Forms, 1886-1936," Center Discussion Papers 123319, Yale University, Economic Growth Center.
    8. Timothy W. Guinnane, 2011. "The Historical Fertility Transition: A Guide for Economists," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 589-614, September.
    9. Assaf Razin & Efraim Sadka, 2014. "Migration and Welfare State: Why is America Different from Europe?," NBER Working Papers 20450, National Bureau of Economic Research, Inc.
    10. Felix Kersting, 2023. "Mimicking the Opposition: Bismarck's Welfare State and the Rise of the Socialists," Rationality and Competition Discussion Paper Series 448, CRC TRR 190 Rationality and Competition.
    11. Guinnane, Timothy & Streb, Jochen, 2019. "Bismarck to no Effect: Fertility Decline and the Introduction of Social Insurance in Prussia," Working Papers 13, German Research Foundation's Priority Programme 1859 "Experience and Expectation. Historical Foundations of Economic Behaviour", Humboldt University Berlin.
    12. Timothy J. Hatton, 2010. "The Cliometrics Of International Migration: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 941-969, December.
    13. Lucia Kureková, 2013. "Welfare Systems as Emigration Factor: Evidence from the New Accession States," Journal of Common Market Studies, Wiley Blackwell, vol. 51(4), pages 721-739, July.

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