Free movement of people and cross-border welfare in the European Union: Dynamic rules,limited outcomes

Abstract

For decades, the European legislators and the Court of Justice have extended the rights to free movement and cross-border welfare in the European Union (EU). Strong assumptions on the impact of these rules have been made. It has been held by some that they will lead to welfare migration and thus to be a fundamental challenge to the welfare state. However, studies of how these rules are implemented and what become the de facto outcomes hereof remain scarce. We address this research gap, by examining domestic responses to and outcomes of dynamic EU rules. We based our research on a unique set of administrative data for all EU citizens living in the universalist, tax-financed welfare state of Denmark between 2002 and 2013. We find that domestic responses have been restrictive and outcomes limited.