Migration is a given. It happens. But what effect does it have on the wages of those already living in the destination country? Joan Llull develops a new estimation technique and uses push factors and distance to investigate how wages in the United States and Canada respond to immigration.
Barcelona GSE research on VoxEU.org by Kerem Cosar, Nezih Guner, and James R. Tybout
Trade liberalisations are often accompanied by labour market reforms, making it difficult to isolate their effects. This column discusses the effects of trade liberalisation, globalisation, and labour-market reforms on the Colombian labour market. Reduced trade frictions increased cross-firm wage inequality and shifted the firm-size distribution rightward, with offsetting effects on overall wage inequality. Average income increased, but the gains were concentrated among employees of large, productive firms with access to export markets. Greater trade openness also increased job turnover.
Albrecht Glitz asks whether and to what extent a worker’s labor market outcomes are affected by the social network in which he or she is embedded.