Efficiency Gains from Liberalizing Labor Mobility

Docquier, Fredérić; Machado, Joël; Sekkat, Khalid

doi:10.1111/sjoe.12097

Cited by 90 publications

(71 citation statements)

References 67 publications

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“…Bertoli and Fernández-Huertas (2015) find that bilateral migration flows roughly double in the absence of visa requirements, in line with the many estimates of the global GDP gains from unrestricted migration on the order of 100%. (Docquier et al 2015), in contrast, estimate global GDP gains of 18% from unrestricted migrationprincipally due to assuming much lower unrestricted migration rates. 4…”

Section: A Faulty Counterargument: Compensating Differentialsmentioning

confidence: 99%

The New Economic Case for Migration Restrictions: An Assessment

Clemens

Pritchett

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACTThe New Economic Case for Migration Restrictions: An Assessment * For decades, migration economics has stressed the effects of migration restrictions on income distribution in the host country. Recently the literature has taken a new direction by estimating the costs of migration restrictions to global economic efficiency. In contrast, a new strand of research posits that migration restrictions could be not only desirably redistributive, but in fact globally efficient. This is the new economic case for migration restrictions. The case rests on the possibility that without tight restrictions on migration, migrants from poor countries could transmit low productivity ("A" or Total Factor Productivity) to rich countriesoffsetting efficiency gains from the spatial reallocation of labor from low to high-productivity places. We provide a novel assessment, proposing a simple model of dynamically efficient migration under productivity transmission and calibrating it with new macro and micro data. In this model, the case for efficiency-enhancing migration barriers rests on three parameters: transmission, the degree to which origin-country total factor productivity is embodied in migrants; assimilation, the degree to which migrants' productivity determinants become like natives' over time in the host country; and congestion, the degree to which transmission and assimilation change at higher migrant stocks. On current evidence about the magnitudes of these parameters, dynamically efficient policy would not imply open borders but would imply relaxations on current restrictions. That is, the new efficiency case for some migration restrictions is empirically a case against the stringency of current restrictions.JEL Classification: F22, J61, O11

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Section: A Faulty Counterargument: Compensating Differentialsmentioning

confidence: 99%

The New Economic Case for Migration Restrictions: An Assessment

Clemens

Pritchett

2016

SSRN Journal

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“…A number of papers have modeled the influence of immigration policies on migration decisions in terms of the monetary costs that they, implicitly or explicitly, impose. See, for instance, Giordani and Ruta (2013), Bianchi (2013) and Docquier et al (2015).…”

Section: Selective Immigration Policies and Migrants' Qualitymentioning

confidence: 99%

Can selective immigration policies reduce migrants' quality?

Bertoli

Dequiedt

Zénou

2016

Journal of Development Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Can Selective Immigration PoliciesIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model that analyzes the effects of selective immigration policies on migrants' quality, measured by their wages at destination. We show that the prevailing pattern of selection on unobservables influences the effect of an increase in selectivity, which can reduce migrants' quality when migrants are positively self-selected on unobservables. We also demonstrate that, in this case, the quality-maximizing share of educated migrants declines with the scale of migration.JEL Classification: F22, K37, J61

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“…Across the globe, the desire to emigrate far outstrips the actual emigration rate-millions of people are willing to pay considerable sums of money in order to move [1]. Even at current fees, there is excess demand for visas to immigrate to certain countries, as evidenced by the long backlogs of people waiting to emigrate to Canada and the US [5], [6].…”

Section: Other Considerationsmentioning

confidence: 99%