Goods trade and international mobility of labor are typically analyzed separately. While there is excellent research in both fields, far less is known about the interrelationships between international migration and international trade. This paper provides a first structurally estimable model of...

Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor...

We show that economic development is associated with lower trade costs by applying a gravity equation to exports from 103 Italian provinces to 188 countries over the period 1995-2004. Italian provinces are heterogeneous with respect to trade costs