Calendrier du 08 septembre 2020
Applied Economics Lunch Seminar
Du 08/09/2020 de 12:30 à 13:30
* * (PSE)
Workers Across Borders: Equity-Efficiency Trade-Offs in Mobility Policies
This paper studies coordinated public policies designed to boost the cross-border mobility of workers. I exploit the unique setting provided by a Europe-wide mobility scheme, exempting workers “posted abroad by firms from tax and social contributions in their destination country. I assemble novel and exhaustive administrative data from several countries on sending and receiving firms, as well as mobile and domestic workers affected by the policy, to study its effects on labour market and fiscal outcomes. Drawing on rich exogenous variations in mobility incentives and regulations, I examine the potential wage and profits mobility premia, to understand how the efficiency surplus from increased integration is shared between workers, government and firms, within and across countries. My analysis highlights the efficiency-equity trade-offs faced by policy-makers in the design and implementation of these policies. I use my results to shed light on government incentives to coordinate or defect in free-movement areas, and to discuss the overall welfare implications of international workers' mobility.