This paper shows that international labor mobility attenuates information frictions, and leads to higher-quality products, more trade, and more effective global value chains. Exploiting variation in the time and intensity at which Swiss postal codes were hit by the increasing availability of...

In this paper, we provide new explanations for the puzzling findings in the literature that migrants do not decrease natives' wages, and that skilled immigration can actually increase them. We develop a model with regional labor markets and heterogeneous firms in which workers of different skill...