%0 Report
        %A Schiff, Maurice
        %T Labor Mobility, Trade and Social Capital
        %D 2004
        %8 2004 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1027
        %U https://www.iza.org/publications/dp1027
        %X Labor market integration raises welfare in the absence of distortions. This paper examines
labor and goods market integration in a general equilibrium model with social capital. The
findings are: i) labor market integration has an ambiguous impact on welfare, and raises it if
the goods produced and the labor skills are sufficiently different; ii) compared to Pareto
optimum, labor mobility (social capital) is excessively large (depleted); iii) trade is superior to
labor market integration if trading costs are no higher than private migration costs; otherwise
the outcome is ambiguous; and iv) the creation of new institutions in response to labor
market integration has an ambiguous impact on welfare.
        %K trade
%K social capital
%K labor market integration