As economic globalisation runs its seemingly relentless course, the demands on OECD economies' flexibility are set to increase still further in the years to come. What kind of society will be able to cope with these pressures? How much and what kinds of adaptability will be required of...

This paper explores the relationship between openness to trade and to immigration on income per person. To address endogeneity concerns we extend the instrumental-variables strategy first used by Frankel and Romer (1999). We show that distance (geographical and cultural) can be used to build a...