Rebordering Britain & Britons after Brexit
The welfare impact of migration with endogenous cross-border movement: An application to the European Union
Abstract
In this paper, I examine the welfare impact of migration in a general equilibrium model with endogenous worker location choice. My framework incorporates labor productivity differences across countries, worker heterogeneity in productivity across skill and nativity types, as well as country-pair specific costs of migration. In a series of experiments, I predict the migration response of workers to an expansion or contraction in the number of European Union (EU) member countries. For the case of the United Kingdom (U.K.) leaving the EU, commonly referred to as Brexit, low skilled native-born U.K. workers suffer a drop-in income, whereas high skilled workers experience an increase. This result is driven, in part, by an increase in high skilled immigration to the U.K. from outside the EU, which helps to dampen the loss in income of low skilled workers.
You might also be interested in :
Impact of border barriers, returning migrants, and trade diversion in Brexit: Firm exit and loss of variety
We investigate the impact of Brexit (the UK's planned withdrawal from the European Union) using computable general equilibrium models featuring conventional constant returns-to-scale (CRS) and increasing returns-to-scale (IRS) technology and firm heterogeneity, a la Melitz.
Making sense of Brexit losses: An in-depth review of macroeconomic studies
Almost all economic assessments of Brexit conclude that there would be significant losses for both the UK and the EU. This paper examines the driving forces behind these results.
The labor market impacts of Brexit: Migration and the European union
Given the uncertainty over the post-Brexit immigration system between the UK and EU, how are new migration regulations affecting labor markets?