It is generally accepted that migration will lead to an increase in income. However the question is how will income be distributed across individuals in society? If migrants have lower education levels, when compared to current urban workers, then the in ow of migrants will increase the skill...

The migration literature shows that cross-border skill transfer is associated with a risk of increased job-education mismatch. This paper examines whether the problems of job-education mismatch often found among migrants also apply to cross-border commuters and compares cross-border commuters to...

New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to...

In recent years, foreign labour has become an essential issue in Western Europe. Recent research suggests that foreign labour has implications for regional growth patterns and employment opportunities of native workers. Yet, few studies go into the dimension of the regional determinants of...

We build a dynamic model of migration where, in addition to classical mobility costs, workers face informational frictions that decrease their ability to compete for distant job opportunities. We structurally estimate the model on a matched employer-employee panel dataset describing labor market...

I describe the extent and structure of cross-border commuting in the EU 27 to show that this is important only in a small number of border regions with strong linguistic, historic or institutional ties. Cross-border commuters are mostly medium skilled, male manufacturing workers, who have higher...

Research has shown a limited labor mobility response to trade shocks. However, existing studies of aggregate mobility may miss important heterogeneity. This paper proposes a mechanism through which local labor markets adjust to trade shocks, namely immigrant mobility. I find a relative decline...

In this chapter, we analyze immigration and its effect on urban and regional economies focusing on productivity and labor markets. While immigration policies are typically national, the effects of international migrants are often more easily identified on local economies. The reason is that...

We incorporate the now standard knowledge-capital model of multinational firms in a new economic geography setting. The theoretical predictions of our model suggest that unskilled labor mobility leads to less concentration of production than skilled labor mobility does. This is in line with...

In this paper we consider the interaction between local workers and migrants in the production process of a firm. Both local workers and migrants can invest effort in assimilation activities in order to increase the assimilation of the migrants into the firm and so by increase their interaction...