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International Migration and the Integration of Labor Markets

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  • Chiswick, Barry R.

    () (George Washington University)

  • Hatton, Timothy J.

    () (Australian National University)

Abstract

This paper is concerned with the determinants and consequences of intercontinental migration over the past four centuries. It begins with a review of the history of primarily trans- Atlantic migration to the New World during the period of Colonial settlement. The contract and coerced migration from Europe and Africa gave way, from the 18th century, to an era of free European migration. The period 1850 to 1913 was one of mass migration, primarily from Europe to North America and Oceania and from parts of Asia (primarily India, China and Japan) to other parts of Asia, Africa and the New World. World wars, immigration restrictions and the Great Depression resulted in a period of low international migration (1913 to 1945). In the post-World War II period international migration again increased sharply, but with changes in the nature of the flows, and under the constraints of immigration controls. Europe joined North America and Oceania as a major destination, as did the oil producing Arab countries bordering the Persian Gulf. The paper then explores the reasons for this international migration. Important factors include the relative wages in the origin and destination, the cost of international migration, the wealth to finance the investment, chain migration (kinship and information networks), as well as government subsidies to and restrictions on the free flow of people. The impact of international migration is explored in the context of a two-factor and a threefactor aggregate production function. Implications are developed for the aggregate (average) impact, as well as for the impact on the functional and personal distributions of income. The gainers and losers from international migration are considered. With insights on impact, a political economy approach is used to analyze the determinants of immigration controls. The influence on policy of gainers and losers from immigration was mediated by institutional change and by interest group politics. The long run relationship between globalization and international migration is explored.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 559.

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Length: 69 pages
Date of creation: Aug 2002
Date of revision:
Publication status: published in: M. Bordo, A. Taylor, J. Williamson (eds), Globalization in Historical Perspective, NBER Conference Report, 2003, 65-119
Handle: RePEc:iza:izadps:dp559

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Keywords: globalization; labor market integration; international migration; economic history;

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References

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  1. Chiswick, Carmel U. & Chiswick, Barry R. & Karras, Georgios, 1992. "The impact of immigrants on the macroeconomy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 37(1), pages 279-316, December.
  2. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  3. Chiswick, Barry R. & Miller, Paul W., 2002. "Do Enclaves Matter in Immigrant Adjustment?," IZA Discussion Papers 449, Institute for the Study of Labor (IZA).
  4. Dustmann Christian & Preston Ian P, 2007. "Racial and Economic Factors in Attitudes to Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-41, November.
  5. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," Working Papers 633, Princeton University, Department of Economics, Industrial Relations Section..
  6. Chiswick, Barry R, 1988. "Illegal Immigration and Immigration Control," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 101-15, Summer.
  7. Dunlevy, James A. & Gemery, Henry A., 1978. "Economic Opportunity and the Responses of “Old” and “New” Migrants to the United States," The Journal of Economic History, Cambridge University Press, vol. 38(04), pages 901-917, December.
  8. Barry R. Chiswick, 1999. "Are Immigrants Favorably Self-Selected? An Economic Analysis," University of Chicago - George G. Stigler Center for Study of Economy and State 147, Chicago - Center for Study of Economy and State.
  9. Dunlevy, James A. & Saba, Richard P., 1992. "The role of nationality-specific characteristics on the settlement patterns of late nineteenth century immigrants," Explorations in Economic History, Elsevier, vol. 29(2), pages 228-249, April.
  10. Barry R. Chiswick & Paul W. Miller, 1999. "Immigration, Language and Multiculturalism in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(4), pages 369-385.
  11. Joseph G. Altonji & David Card, 1991. "The Effects of Immigration on the Labor Market Outcomes of Less-skilled Natives," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 201-234 National Bureau of Economic Research, Inc.
  12. Hatton, Timothy J, 1995. "A Model of U.K. Emigration, 1870-1913," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 407-15, August.
  13. George J. Borjas & Richard B. Freeman, 1992. "Immigration and the Workforce: Economic Consequences for the United States and Source Areas," NBER Books, National Bureau of Economic Research, Inc, number borj92-1, July.
  14. Randall Filer, 1992. "The Effect of Immigrant Arrivals on Migratory Patterns of Native Workers," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 245-270 National Bureau of Economic Research, Inc.
  15. Joseph G. Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcomes of Natives," NBER Working Papers 3123, National Bureau of Economic Research, Inc.
  16. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
  17. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
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