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The effect of foreign labor on native employment within an occupation depends on native labor supply to that occupation – which is rarely directly measured – even if native and foreign labor are perfect substitutes in production. This paper uses two natural quasi-experiments to directly...
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For decades, migration economics has stressed the effects of migration restrictions on income distribution in the host country. Recently the literature has taken a new direction by estimating the costs of migration restrictions to global economic efficiency. In contrast, a new strand of research...
Persistent link: https://www.econbiz.de/10011452382
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Theory suggests that groups historically subject to discrimination, such as Jews, could exhibit traditionally high investment in education because discrimination spurred exit facilitated by human capital. Theory moreover suggests that if exit is uncertain, it could induce investment in skill...
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"Guest workers" earn higher wages overseas on temporary low-skill employment visas. This wage effect can quantify global inefficiencies in the pure spatial allocation of labor between poorer and richer countries. But rigorous estimates are rare, complicated by migrant self-selection. This paper...
Persistent link: https://www.econbiz.de/10011974366
Labor markets are increasingly global. Overseas work can enrich households but also split them geographically, with ambiguous net effects on decisions about work, investment, and education. These net effects, and their mechanisms, are poorly understood. We study a policy discontinuity in the...
Persistent link: https://www.econbiz.de/10009672252
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How many immigrants with less than university education, for a given immigration quota, maximise economic output? The answer is zero in the canonical model of the labour market, where the marginal product of a university-educated immigrant is always higher. We build an alternative model in which...
Persistent link: https://www.econbiz.de/10012698640