TY - JOUR
T1 - Goods and factor market integration
T2 - A quantitative assessment of the eu enlargement
AU - Caliendo, Lorenzo
AU - Parro, Fernando
AU - Opromolla, Luca David
AU - Sforza, Alessandro
N1 - Funding Information:
Schott, Daniel Sturm, Sharon Traiberman, David Weinstein, three anonymous referees, and many seminar participants for useful conversations and comments. Luca David Opromolla acknowledges financial support from FCT—Fundação para a Ciência e Tecnologia (Portugal) and national funding through research grant UIDB/05069/2020; he also thanks the hospitality of the Department of Economics at the University of Maryland, where part of this research was conducted. Opromolla is also affiliated with the CEPR (Center for Economic Policy Research), the CESifo (Center for Economic Studies and ifo Institute for Economic Research), the Ostrom Workshop, Economics for Policy at Nova School of Business and Economics, and UECE/REM-ISEG. The analysis, opinions, and findings represent the views of the authors; they are not necessarily those of Banco de Portugal or the Eurosystem. This paper was edited by Ali Hortaçsu.
Publisher Copyright:
© 2021 The University of Chicago. All rights reserved.
PY - 2021/12
Y1 - 2021/12
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85110489524&partnerID=8YFLogxK
U2 - 10.1086/716560
DO - 10.1086/716560
M3 - Article
AN - SCOPUS:85110489524
SN - 0022-3808
VL - 129
SP - 3491
EP - 3545
JO - Journal of Political Economy
JF - Journal of Political Economy
IS - 12
ER -
