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Productivity differences and the dynamic effects of labor movements
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2009 (English)In: Journal of Monetary Economics, ISSN 0304-3932, E-ISSN 0304-3923, Vol. 56, no 8, 1059-1073 p.Article in journal (Refereed) Published
Abstract [en]

Barriers to labor mobility across countries coexist with substantial differences in living standards largely attributable to productivity differences. A growth model with endogenous labor movements is used to assess the effects on output, capital accumulation and welfare of removing barriers to labor mobility. The model is parameterized so that it is consistent with evidence on historical labor movements, and is applied to two cases: the enlargement of the European Union and the (hypothetical) creation of a common labor market in the North America. The main finding is that there are large resulting gains in terms Of Output and welfare. 

Place, publisher, year, edition, pages
2009. Vol. 56, no 8, 1059-1073 p.
Keyword [en]
TFP, Cross-country income differences, Labor mobility, Capital mobility
National Category
Economics and Business
URN: urn:nbn:se:su:diva-59382DOI: 10.1016/j.jmoneco.2009.10.011ISI: 000274649400003OAI: diva2:429437
authorCount :2Available from: 2011-07-04 Created: 2011-06-27 Last updated: 2011-07-04Bibliographically approved

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