The paper uses a two--sector efficiency--wage model to analyze the consequences of immigration for a small open economy with a dual labor market. Immigrants are characterized by an (exogenous) return probability. Legal regulations impose preferential hiring of natives or "old" immigrants. As a...

Taking a benchmark scenario, the current situation in Switzerland, and using a microsimulation technique, we compare the effectiveness of various income maintenance schemes for reducing inequality and poverty. A full negative income tax allowance designed to eliminate poverty is shown to reduce...

In this article, the effects on the Swiss economy of some measures of integration such as a reduction in barriers to trade, a ban on cartels and an increase in labor mobility between Switzerland and the European Economic Area are assessed using an applied general equilibrium model. The analysis...

The issue of the free movement of persons occupies center stage in the negotiations on EU enlargement. Opinion polls and household surveys reveal that a majority of EU citizens are fearful of the consequences of the free movement of persons. Influenced by these surveys, the EU Commission and...

This paper uses a dynamic efficiency-wage model to analyze the consequences of immigration for a small country when there is discrimination against immigrants in a dual labor market with unemployment. Discrimination is of the type "equal pay for equal work, but unequal work" which is...

This paper analyzes the effects of tax-benefit reforms in a framework integrating endogenous labor supply and unemployment. There is a discrete distribution of individuals’ productivities and labor supply decisions are limited to the participation decision. Unemployment is modeled in a search...