migrants and natives under both migration and trade. We use a general equilibrium model of migration, human capital and social … natives. Trade and both migration solutions reduce inequality between the populations of the two countries by the same amount …. In addition, trade and migration are not equivalent if social capital is present: the highest welfare is obtained with …

Pareto optimum, labor mobility (social capital) is excessively large (depleted); iii) trade is superior to labor market …