Global Macro Service > Research Briefings > Germany

Why Germans can thank refugees for higher net wages

Germany’s refugee crisis nearly brought down the government last month. Our analysis shows that, despite populist warnings, an overwhelming majority of Germans will benefit economically from the mostly younger influx into the workforce as it curbs the increases in pension contributions and thus pushes up real net wages long term. Compared to a scenario without refugees, net wages will rise 0.5% by 2025 with the increase peaking at 2.5% by 2055.

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