We develop a theory and an empirical strategy to estimate the welfare gains from trade in economies with frictional local labor markets. We obtain a welfare formula that nests previous results and features an additional adjustment margin, via the employment rate. To obtain causal estimates of...

We develop a theory and an empirical strategy to estimate the welfare gains of economic integration in economies with frictional local labor markets. The model yields a welfare formula that nests previous results in the literature and features an additional adjustment margin, via the employment...

Is skill dispersion a source of comparative advantage? While it is established that a country's aggregate endowment of human capital is an important determinant of comparative advantage, this paper investigates whether the distribution of skills in the labor force can play a role in the...

This paper examines the impact of local economic conditions on mutual fund preferences for geographically proximate stocks and consequently fund performance. Specifically, we demonstrate that mutual funds favouritism towards firms located within close geographic proximity varies with local...

We consider the role of differences in outside wages-the wages earned by similar workers in other jobs-in shaping pay differentials, focusing on the gender dimension in the U.S. during 1980-2010. Using instruments that exploit differential exposure to common industry wage shocks, we find a...

We use new large-scale data techniques and comprehensive high resolution satellite imagery for the contiguous United States to construct novel datasets that capture the geographic determinants of house prices and housing supply: The percentage of undevelopable land – Land Unavailability –...

Are differences in the quality of workers' prospects outside of their current employment relationship influential in generating pay differentials? We consider the role of an economy's industrial structure in generating differences in outside prospects, and apply our analysis to the gender pay...