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http://hdl.handle.net/10419/20262
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| Title: | | Labor Mobility, Trade and Social Capital  |
| Authors: | | Schiff, Maurice |
| Issue Date: | | 2004 |
| Series/Report no.: | | IZA Discussion paper series 1027 |
| Abstract: | | Labor market integration raises welfare in the absence of distortions. This paper examines labor and goods market integration in a general equilibrium model with social capital. The findings are: i) labor market integration has an ambiguous impact on welfare, and raises it if the goods produced and the labor skills are sufficiently different; ii) compared to Pareto optimum, labor mobility (social capital) is excessively large (depleted); iii) trade is superior to labor market integration if trading costs are no higher than private migration costs; otherwise the outcome is ambiguous; and iv) the creation of new institutions in response to labor market integration has an ambiguous impact on welfare. |
| Subjects: | | social capital labor market integration trade |
| JEL: | | J61 F22 F16 Z13 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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| dp1027.pdf | | 331.88 kB | Adobe PDF |
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