Intergration and search unemployment : an analysis of Eastern EU enlargement The paper develops a unified general equilibrium model includingsavings with overlapping generations investment and search unemploament. Long run analytical results for the small open economy identify capital accumulation as a prime transmission channel. The effects of integration on unemployment however depend importantly on the nature of wage taxation and unemployment compensation. As a separate methodological contribution we extend a dynamic CGE model for Germany to allow for search unemployment of high and low skilled labour. Simulating the effects of Eastern EU enlargement we find quantitatively small effects of integration but more pronounced labour market effects from immigration.