This paper provides a novel explanation of “educated unemployment,” which is a salient feature of the labor markets in a number of developing countries. In a simple job-search framework we show that “educated unemployment” is caused by the perspective of international migration, that is,...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by firms' labour demand, a wage-curve determining unemployment, and interregional labour migration. The...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by rms' labour demand, a wage-curve determining unemployment, and interregional labour migration. The...

This paper analyzes the impact of the skill composition of migration flows on the host country’s labor market in a specific factors two-sector model with heterogeneous labor (low-, medium-, and highly-skilled) and price- and wage-setting behavior. The low- and medium-skilled labor markets are...

We analyze the employment effects of immigration within a model that accounts for several stylized facts of the German labor market. The co-existence of positive wage spans and unemployment is explained by wage rigidities that are simultaneously caused by effciency-wage setting and minimum...

Based on the current European discussion about immigration policy, this paper gives an overview of central economic consequences of immigration for a host country's labor market. The most important theoretical arguments are presented and evaluated against the available empirical evidence. The...

Labour market developments in the Euro area diverged significantly since 2008. Economic literature frequently refers to labour mobility as pillar for the functioning of currency areas. Applying the CGE model PuMA, we quantitatively analyse to what extent labour mobility can contribute to...

This paper analyses the impact of the skill composition of migration flows on the host country's labour market in a specific-factors-two-sector model with heterogeneous labour (low, medium, and high skill) and price- and wage-setting behaviour. The low- and medium-skilled labour markets are...

In this paper we study international linkages when forecasting unemployment rates in a sample of 24 OECD economies. We propose a Global Unemployment Factor (GUF) and test its predictive ability considering in-sample and out-of-sample exercises. Our main results indicate that the predictive...

The present paper makes an attempt to examine theoretically the impact of emigration of skilled labour from developing countries on the level of welfare of the non-migrants and the level of urban unemployment of unskilled labour in a three sector Harris-Todaro model. The analysis suggests that...