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Efficiency Gains from the Elimination of Global Resstrictions on Labour Mobility: An Analisis Using a Multiregional CGE Model

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Ana María Iregui ()

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Abstract

We compute the world- wide efficiency gaings from the elimination of global restrictions on labour mobility using a multiregional CGE model. A distinctive feature of our analysis is the introduction of a segmented labour market, as two types of labour are considered: Skilled and unskilled. According to our results, when labour is a homogeneous factor, the elimination of global restrictions on labour mobility generates world- wide efficiency gains that could be of considerable magnitude. When the labour market is segmented and both skilled and unskilled labour migrate, welfare gaings reduce since the benefits and losses of migration are not evenly distributed within each region.When only skilled labour migrates, the world-wide efficient gaings are smaller, since this type of labour represents a small fraction of the labour force in developings regions.

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Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 146.

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Handle: RePEc:bdr:borrec:146

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Related research
Keywords: Migration; applied CGE modelling; labour market segmentation;

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Marquez, Jaime, 1990. "Bilateral Trade Elasticities," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 70-77, February. [Downloadable!] (restricted)
  2. Hill, John K. & Mendez, JoseA., 1984. "The effect of commercial policy on international migration flows: The case of the United States and Mexico," Journal of International Economics, Elsevier, vol. 17(1-2), pages 41-53, August. [Downloadable!] (restricted)
  3. Dawkins, Christina & Srinivasan, T.N. & Whalley, John, 2001. "Calibration," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 58, pages 3653-3703 Elsevier. [Downloadable!] (restricted)
  4. Hamilton, Bob & Whalley, John, 1984. "Efficiency and distributional implications of global restrictions on labour mobility : Calculations and policy implications," Journal of Development Economics, Elsevier, vol. 14(1), pages 61-75. [Downloadable!] (restricted)
  5. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May. [Downloadable!] (restricted)
  6. Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-25, May. [Downloadable!] (restricted)
  7. John Whalley, 1984. "Trade Liberalization among Major World Trading Areas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262231204.
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Cited by:
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  1. Hendrik P. van Dalen, 2007. "Global Aging and Economic Convergence: A Real Option or Still a Case of Science Fiction?," Tinbergen Institute Discussion Papers 07-051/1, Tinbergen Institute. [Downloadable!]
  2. Rutten, Martine, 2008. "Medical migration : what can we learn from the UK's perspective ?," Policy Research Working Paper Series 4593, The World Bank. [Downloadable!]
  3. Moses, Jonathon W. & Letnes, Bjorn, 2003. "If People were Money: Estimating the Potential Gains from Increased International Migration," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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