Intl Labor Migration

Intl Labor Migration - T HE ECONOl\1IC IMPACT OF...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
THE ECONOl\1IC IMPACT OF INTERNATIONAL LABOR MICRATION: RECENT ESTIMATES AND POLICY IMPLICATIONS by HOWARD F. CHANG * ABSTRACT In this essay, I survey the economic theory and the most recent empirical evidence of the economic impact of international labor migration. Estimates of the magnitude of the gains that the world could enjoy by liberalizing international migration indicate that even partial liberalization would not only produce substantial increases in the world's real income but also improve its distribution. The gains from liberalization would be distributed such that if we examine the effects on natives in the countries of immigration, on the migrants, and on those left behind in the countries of emigration, we find that each group enjoy significant gains. Furthermore, estimates of the impact of immigration on native workers in the United States indicate that only the least skilled native workers suffer adverse effects and that these effects are small. Thus, although the economic effects of immigration on native workers and distributive justice among natives arc often advanced as reasons to reduce immigration, these concerns do not provide a sound justification for our restrictive immigration laws. Instead, the appropriate response to concerns about the distribution of income among natives is to increase the progressivity of our tax system. Protectionist immigration policies are not only likely to be relatively costly as an instrument for redistribution but also perverse from the standpoint of global justice. Thus, considerations of economic efficiency and distributive justice both militate in favor of liberalized immigration policies. I TRODUCTION Given the prominent role of claims regarding the economic impact of immigrant in debates over immigration reform, it is important to understand what economists have to say about the effects of labor migration. In this essay, I survey the economic theory and the most recent evidence on the economic impact of labor migration in order to shed light on these policy debates. Where economists disagree abollt these effects, I seek to explain and to reconcile divergent estimates 111 the empirical literature on the direction and magnitude of Earle Hepburn Professor of Law, University of Pennsylvania Law School. Copyright © 2007 by Howard F. Chang. I would like to thank symposium participanls at Temple University, colloquium participants at Columbia University, and roundt3ble participants at Shanghai University for helpful comments. [3211
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
322 TEMPLE POLITICAL & CIVIL RIGHTS LAW REVIEW i \ \ these effects. Recent increases in the internationai migration of workers are one facet of globalization, whid' economists understand to mean the development of a glnba i common market, that is, our evolution toward a world economy that is integraleu across national boundaries. Our progress in this direction has been especially dramatic in the liberalization of international trade in goods. Economists generally welcome this development. prescribing free trade as the regime that maximizes
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/09/2011 for the course VARIOUS Various taught by Professor Various during the Fall '11 term at S.F. State.

Page1 / 13

Intl Labor Migration - T HE ECONOl\1IC IMPACT OF...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online