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A series of recent influential papers has emphasized that in order to identify the wage effects of immigration one needs to consider national effects by skill level. The criticism to the so called ʺarea approachʺ is based on the fact that native workers are mobile and would eliminate, in the...
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I show that a CES production-function-based approach with skill differentiation and integrated national labor markets has predictions for the employment effect of immigrants at the local level. The model predicts that if I look at the employment (rather than wage) response by skill to...
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In an interesting and influential paper Robert Lucas (1993) considering the experience of East Asian small economies, suggests that 'on the job' learning could be the principal engine of their miraculous growth in the last 20 years. In this paper I develop an overlapping generation model where...
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