We analyze under which conditions temporary migration of unskilled and skilled workers increases human capital accumulation in the host country. We also show that the negative welfare effect of lower unskilled wages may be counterbalanced by deeper human capital formation

This paper sheds light on the relationship between income inequality and redistributive policies and provides possible guidance in the specification of empirical tests of such a relationship. We model a two-period economy where capital markets are imperfect and agents vote over the level of...

This paper investigates the economic consequences of international migration from the point of view of destination countries. Consistently with international evidence on migration flows, we build a model where the migration rate is higher among the highly-educated. A negative relationship is...

This research examines the economic origins of Islam and uncovers two empirical regularities. First, Muslim countries, virtual countries and ethnic groups, exhibit highly unequal regional agricultural endowments. Second, Muslim adherence is systematically larger along the pre-Islamic trade...