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Productivity differences and the dynamic effects of labor movements

Klein, Paul and Ventura, Gustavo (2009) Productivity differences and the dynamic effects of labor movements Journal of Monetary Economics, 56, (8), pp. 1059-1073. (doi:10.1016/j.jmoneco.2009.10.011).

Record type: Article


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.

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Published date: November 2009
Keywords: tfp, cross-country income differences, labor mobility, capital mobility
Organisations: Economics


Local EPrints ID: 174065
ISSN: 0304-3932
PURE UUID: fc524c69-0e7e-4b8d-8435-dfaac0040ba7

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Date deposited: 10 Feb 2011 11:10
Last modified: 18 Jul 2017 12:12

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Author: Paul Klein
Author: Gustavo Ventura

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