TY  - RPRT
        AU  - Schiff, Maurice
        TI  - Labor Mobility, Trade and Social Capital
        PY  - 2004/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1027
        UR  - https://www.iza.org/publications/dp1027
        AB  - 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.
        KW  - trade
KW  - social capital
KW  - labor market integration
        ER  -