Kennan, John - In: Review of Economic Dynamics 16 (2013) 2, pp. 1-1
differences in productivity. If workers are much more productive in one country than in another, restrictions on immigration lead …-augmenting, and free trade in product markets leads to factor price equalization, so that wages are equal across countries when … measured in efficiency units of labor. The estimated gains from removing immigration restrictions are huge. Using a simple …