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

Costanza Naguib ()

No 1903, Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science

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.

Keywords: Wage mobility; Bilateral Agreements; causal forest; Conditional Average Treatment Effect (search for similar items in EconPapers)
JEL-codes: C14 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-big and nep-int
Date: 2019-02
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