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Mathilde MUNOZ (PSE) – “Workers Across Borders: Equity-Efficiency Trade-Offs for Mobility Policies”

February 23, 3:00 pm - 4:00 pm

The Microeconometrics Seminar: Every Tuesday

Time: 03:00 pm – 4:00 pm
Date: 23rd of February 2021

by visio

Mathilde MUNOZ (PSE) – “Workers Across Borders: Equity-Efficiency Trade-Offs for Mobility Policies”

Abstract: Abstract This paper reexaminates aggregate gains and distributional costs of international mobility when workers move across borders through firms. I exploit the unique setting provided by a Europe-wide mobility scheme focused on companies, exempting workers “posted” abroad by firms from tax and social contributions in their destination country. I assemble novel and exhaustive administrative data on this large firms-based mobility scheme to study its effects on labour market and fiscal outcomes. I start by documenting a novel channel of international workers’ mobility through firms’ trade in services. I show that a large and increasing share of overall workers’ mobility occurs through firms performing services abroad, and that this new type of mobility overcome other mobility regimes in many countries and sectors. Drawing on rich exogenous variations in mobility incentives and regulations provided by this continent-wide experiment, I find that the scheme has generated substantial mobility gains, and that mobility flows through firms are very responsive to changes in mobility costs. To understand whether firms are an important driver of distributional gains and costs of mobility, I study how the efficiency surplus from increased integration has been shared between workers’ wages, government revenue, and firms’ profits, within and across countries. I find that services exports mobility generates substantial employment, wages and profits gains in sending countries, that translate into more tax revenues for origin governments. While the estimated mobility surplus is large, it is also mostly captured by capital owners that extract up to 2/3 of the overall mobility gains at the firm-level​.



Benoît SCHMUTZ (Laboratoire de Microéconométrie-CREST)

Anthony STRITTMATTER (Laboratoire de Microéconométrie-CREST)




February 23
3:00 pm - 4:00 pm
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