We investigate the existence of wage premium due to cultural diversity across US cities. Using census data from 1970 to 1990, we find that at the urban level richer diversity is systematically associated with higher average nominal wages for white US-born males. We measure cultural diversity in...

A series of recent influential papers has emphasized that in order to identify the wage effects of immigration one needs to consider national effects by skill level. The criticism to the so called ʺarea approachʺ is based on the fact that native workers are mobile and would eliminate, in the...

This paper estimates the effects of immigration on wages of native workers at the national U.S. level. Following Borjas (2003) we focus on national labor markets for workers of different skills and we enrich his methodology and refine previous estimates. We emphasize that a production function...

I show that a CES production-function-based approach with skill differentiation and integrated national labor markets has predictions for the employment effect of immigrants at the local level. The model predicts that if I look at the employment (rather than wage) response by skill to...

We adopt a general equilibrium approach in order to measure the effects of recent immigration on the Western German labor market, looking at both wage and employment effects. Using the Regional File of the IAB Employment Subsample for the period 1987-2001, we find that the substantial...

This paper asks the following important question: what was the effect of surging immigration on average and individual wages of U.S.-born workers during the period 1990-2004? Building on section VII of Borjas (2003) we emphasize the need for a general equilibrium approach to analyze this...

The recent literature on externalities of schooling in the U.S. is rather mixed: positive external effects of average education are hardly found at all, while often positive externalities from the share of college graduates are identified. This paper proposes a simple model to explain this fact...

This paper explores the relationship between economic openness and income per person using cross-country data. To address endogeneity concerns we extend the instrumental-variables strategy first used by Frankel and Romer (1999). First, we show that bilateral geographic characteristics of...