In this note, we show that labour market integration can be a double-edged sword. In the presence of local human capital externalities, integration and the ensuing agglomeration of skilled labour can cause a decline in human capital and the total wage sum (net of education costs). In particular,...

Human capital theory predicts pecuniary returns to regional migration, but also positive self-selection of migrants. Therefore, when estimating the causal effect of migration one has to take care of potential self-selection. Several authors recommend using fixed effects models thereby...

Between 1984 and 2003, New Zealand undertook comprehensive market-oriented economic reforms. In this paper, we use Census data to examine how the internal mobility of Māori compares to that of Europeans in New Zealand in the period after these reforms. It is often suggested that Māori are less...

Between 1984 and 1993, New Zealand undertook comprehensive market-oriented economic reforms. In this paper, we use census data to examine how the internal mobility of Māori compares to that of Europeans in New Zealand in the period after these reforms. It is often suggested that Māori are less...

Human capital theory predicts pecuniary returns to regional migration, but also positive self-selection of migrants. Therefore, when estimating the causal effect of migration one has to take care of potential self-selection. Several authors recommend using fixed effects models thereby...

Between 1984 and 2003, New Zealand undertook comprehensive market-oriented economic reforms. In this paper, we use Census data to examine how the internal mobility of Māori compares to that of Europeans in New Zealand in the period after these reforms. It is often suggested that Māori are less...

Between 1984 and 2003, New Zealand undertook comprehensive market-oriented economic reforms. In this paper, we use Census data to examine how the internal mobility of Māori compares to that of Europeans in New Zealand in the period after these reforms. It is often suggested that Māori are less...

This paper provides the first causal evidence on the impact of retirement on housing choices. Our empirical strategy exploits the discontinuity in the eligibility ages for state pension as an instrument for the endogenous retirement decision and controls for time-invariant individual...

We develop a model of double matching in the labor market and the social environment in order to explain different migration patterns in response to local economic shocks. This approach explains the different behaviors of workers in different groups, regions, or countries in an endogenous way by...

The migration of labour can affect economies in several ways. This paper focuses on two of the economic impacts of migration in the context of the recent Welsh experience. Firstly, since migration is a key aspect of labour market flexibility, it is a mechanism through which local and regional...