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This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a new quantitative spatial trade model and to use an...
Persistent link: https://www.econbiz.de/10010516481
European labor markets are characterized by the low geographical mobility of workers. The absence of mobility is a factor behind high unemployment when jobless people prefer to remain in their home region rather than to go prospecting in more dynamic areas. In this paper, we attempt to...
Persistent link: https://www.econbiz.de/10003752852
The Mortensen-Pissarides model with unemployment benefits and taxes has been able to account for the variation in unemployment rates across countries but does not explain why geographical mobility is very low in some countries (on average, three times lower in Europe than in the U.S.). We build...
Persistent link: https://www.econbiz.de/10003845963
A search model of the labor market is augmented to include commuting time to work. The theory posits that wages are … combinations of distance and wages are accepted, there is non-random selection of accepted job offers. We build on these … ingredients to explore in the data the relationship between wages and commute time. We find that neglecting to account for this …
Persistent link: https://www.econbiz.de/10003905644