Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/235100 
Year of Publication: 
2020
Series/Report no.: 
KOF Working Papers No. 486
Publisher: 
ETH Zurich, KOF Swiss Economic Institute, Zurich
Abstract: 
We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform.
Subjects: 
border region
cross-border workers
free movement of persons
firm performance
firm relocation
immigration policy
immigration restrictions
labor mobility
skilled immigration
JEL: 
F22
J22
J24
J61
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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