Brexit and Its Potential Effects on the German Labour Market

Brexit will undoubtedly affect the German labour market. Many German establishments produce for export to the United Kingdom (UK) and future trade barriers could reduce demand for their products and consequently, the labour demand of those establishments. On the labour supply side, Brexit will affect European migration fl ows. A more restrictive UK immigration policy could prompt EU citizens willing to migrate to choose to move to Germany instead, for example, thereby increasing the receiving country’s labour supply. Our empirical analysis suggests only modest consequences due to Brexit on both sides of the German labour market.