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We study the effects of immigration on native welfare in a general equilibrium model featuring two skill types, search frictions, wage bargaining, and a redistributive welfare state. Our quantitative analysis suggests that, in all 20 countries studied, immigration attenuates the effects of...
Persistent link: https://www.econbiz.de/10010418118
With endogenous skills and given technology, labor market integration necessarily lowers welfare of the left-behind in a poor sending country, even if all agents face identical emigration probabilities. This is in sharp contrast to the case of exogenous skill supply.
Persistent link: https://www.econbiz.de/10010264146
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In his seminal paper, Rose (2004) concluded from a gravity-type study of bilateral trade that the GATT/WTO does not play a strong role in encouraging trade. Rose looks at countries where the amount of trade was positive to start with (intensive margin). In this paper, we present a...
Persistent link: https://www.econbiz.de/10010274458
institutional variables? In this paper, we generalize F&R's geography-based empirical strategy to a panel setting. We observe that … in panel setups where it is possible to fully control for geographical and historical determinants of countries … disasters ; instrumental variable estimation ; panel econometrics …
Persistent link: https://www.econbiz.de/10009240715
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Growth theory predicts that natural disasters should, on impact, lower GDP per capita. However, the empirical literature does not offer conclusive evidence. Most existing studies use disaster data drawn from damage records of insurance companies. We argue that this may lead to estimation bias as...
Persistent link: https://www.econbiz.de/10010199740
Increasing wage inequality between similar workers plays an important role for overall inequality trends in industrialized societies. To analyze this pattern, we incorporate directed labor market search into a dynamic model of international trade with heterogeneous firms and homogeneous workers....
Persistent link: https://www.econbiz.de/10010250120
Reportedly, firms often find it impossible to finance large and long-term projects despite positive net present values. Should governments step in and can their assistance be effective? This paper studies the case of public export credit guarantees in Germany. Covering the default risk of...
Persistent link: https://www.econbiz.de/10009580766
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