Workers Without Borders? Culture, Migration and the Political Limits to Globalization
Abstract
This paper examines the role of cultural factors in driving the politics, size and nature (temporary versus permanent migration) of migration policy. We show that there exists a broad political failure that results in inefficiently high barriers restricting the import of temporary foreign workers and also admitting an inefficiently large number of permanent migrants. Strikingly, we show that countries that are poor at cultural assimilation are better positioned to take advantage of temporary foreign worker programs than more culturally diverse and tolerant countries. Furthermore, relaxing restrictions in the mobility of migrant workers across employers has the potential to raise host country welfare even though it increases migrant wages and lowers individual firms profits. We also demonstrate the existence of multiple equilibria: some countries have mostly temporary migration programs and see a low degree of cultural assimilation by migrants, while other countries rely more on permanent migrants and see much more assimilation.Download Info
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Paper provided by Competitive Advantage in the Global Economy (CAGE) in its series CAGE Online Working Paper Series with number 19.Length:
Date of creation: 2010
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Handle: RePEc:cge:warwcg:19
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Keywords: International migration; political economy; political failure; culture; assimilation; multiple equilibria.;Other versions of this item:
- Sanjay Jain & Sumon Majumdar & Sharun Mukand, 2010. "Workers without Borders? Culture, Migration and the Political Limits to Globalization," CESifo Working Paper Series 2954, CESifo Group Munich.
- Sanjay Jain & Sumon Majumdar & Sharun Mukand, 2008. "Workers Without Borders? Culture, Migration and the Political Limits to Globalization," Working Papers 1196, Queen's University, Department of Economics.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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