Free trade agreements and interregional labor migration: the case of the U.S. and Canada.

This paper focuses on the different effects that trade policy have on distinctive regions within a country by modeling the subnational impact of the Free Trade Agreement between the U.S. and Canada using an applied general equilibrium model. This study incorporates interregional labor mobility into the model and, by comparing the new results to those measured in the absence of labor migration, shows the importance of allowing for interregional labor mobility when modeling at the subnational level the effects of nationality of internationally designed policies. [ABSTRACT FROM AUTHOR]