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Estimating the Heterogeneous Impact of the Free Movement of Persons on Relative Wage Mobility

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  • Naguib, Costanza

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Abstract

We analyse the impact of an inflow of foreign workers on positional wage mobility in a small open economy like Switzerland. We exploit the quasi-natural experiment constituted by the entry into force of the Agreement on the Free Movement of Persons between Switzerland and the EU on 1st June 2002. We compute conditional average treatment effects with machine learning methods, and we find evidence of relevant heterogeneity in the impact of this policy on wage mobility.

Suggested Citation

  • Naguib, Costanza, 2019. "Estimating the Heterogeneous Impact of the Free Movement of Persons on Relative Wage Mobility," Economics Working Paper Series 1903, University of St. Gallen, School of Economics and Political Science.
  • Handle: RePEc:usg:econwp:2019:03
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    More about this item

    Keywords

    Wage mobility; Bilateral Agreements; causal forest; Conditional Average Treatment Effect;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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