Published:
Cambridge, Mass: National Bureau of Economic Research, 2018
Published in:NBER working paper series ; no. w25302
Extent:
1 Online-Ressource; illustrations (black and white)
Language:
English
DOI:
10.3386/w25302
Identifier:
Reproduction note:
Hardcopy version available to institutional subscribers
Origination:
Description:
We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform