Reduced labour market flexibility may protect some native workers from immigrant competition but can increase negative effects on equilibrium employment. This motivates an analysis of immigration effects interacted with institutions. OLS estimates for European countries show small, mostly...

Theory predicts that mandated employment protection may reduce productivity by distorting production choices. We use the adoption of wrongful-discharge protection by state courts in the US from 1970 to 1999 to evaluate the empirical link between dismissal costs and productivity. Drawing on...

Instrumental Variables (IV) methods identify internally valid causal effects for individuals whose treatment status is manipulable by the instrument at hand. Inference for other populations requires homogeneity assumptions. This paper outlines a theoretical framework that nests causal...