Goods and Factor Market Integration: A Quantitative Assessment of the EU Enlargement
构建多国动态一般均衡模型,研究2004年欧盟扩大对贸易和移民的影响,发现政策变化带来总体福利增益,但不同技能群体受益不均,并强调贸易在劳动力市场一体化中的关键作用。
We build a multicountry dynamic general equilibrium model to study the economic effects of the 2004 enlargement of the European Union. In our model, trade is costly and households of different skills and nationalities face costly forward-looking migration decisions. We exploit the timing of migration policy changes to identify the changes in migration costs. We find that the changes in migration and trade policy resulted in aggregate welfare gains but with heterogeneous effects across skill groups. We study the interaction between trade and migration policies and highlight the importance of trade for quantifying the welfare and migration effects of labor market integration.