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Free Movement, Open Borders, and the Global Gains from Labor Mobility

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  • Christian Dustmann
  • Ian P. Preston

Abstract

Straightforward economic arguments point to the potential for large global output gains from the movement of labor from less to more productive locations. Yet the politics of receiving countries seems resistant, characterized rather by efforts to limit migration or to stop it altogether. In this article we examine the foundations of claims of large welfare gains through free mobility, studying implications of liberalizing migration for world welfare under a variety of models, paying attention not only to overall gains but also to how gains are distributed and reviewing attempts to quantify the benefits. We conclude by asking how far considerations beyond economics motivate keenness to impose restrictions on migration.

Suggested Citation

  • Christian Dustmann & Ian P. Preston, 2019. "Free Movement, Open Borders, and the Global Gains from Labor Mobility," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 783-808, August.
    • Handle: RePEc:anr:reveco:v:11:y:2019:p:783-808
    DOI: 10.1146/annurev-economics-080218-025843
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    Cited by:

    1. Jonas Feld, 2024. "Minimum wages and labor mobility in the European Union," French Stata Users' Group Meetings 2024 04, Stata Users Group.
    2. Margarita Katsimi & Ron Smith & Gylfi Zoega, 2025. "The Euro and Saving-Investment Imbalances over 25 Years: The Importance of Common Currency and Common Markets," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 72(SI), pages 115-138, SI.
    3. Ma, Cao-Yuan & Ni, Xiu-Feng & Li, Ting-Rui, 2025. "Labor migration, economic growth, and welfare inequality: A quantitative analysis of China," Economic Systems, Elsevier, vol. 49(3).
    4. Richard Curtain & Ryan B Edwards & Massimiliano Tani & Glenn Withers, 2022. "It is Time for a New Regional Compact!," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 281-289, June.
    5. Monica BURESCU MIHĂILA & Paula Roxana CUCOȘ, 2023. "Implications of migration policies on reducing income inequalities and poverty in Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(635), S), pages 23-42, Summer.
    6. Courtney Brell & Christian Dustmann, 2019. "Immigration and Wage Growth: The Case of Australia," RBA Annual Conference Papers acp2019-05, Reserve Bank of Australia, revised Jul 2019.
    7. Bandiera, Oriana & Kotia, Ananya & Lindenlaub, Ilse & Moser, Christian & Prat, Andrea, 2024. "Meritocracy across Countries," CEPR Discussion Papers 19007, Centre for Economic Policy Research.
    8. Fremerey, Melinda & Hörnig, Lukas & Schaffner, Sandra, 2024. "Becoming neighbors with refugees and voting for the far-right? The impact of refugee inflows at the small-scale level," Labour Economics, Elsevier, vol. 86(C).
    9. Michael A. Clemens, 2022. "Migration on the Rise, a Paradigm in Decline: The Last Half-Century of Global Mobility," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 257-261, May.
    10. Cardoso, Miguel, 2020. "The welfare impact of migration with endogenous cross-border movement: An application to the European Union," Economic Modelling, Elsevier, vol. 93(C), pages 205-216.
    11. Mevlude Akbulut‐Yuksel & Naci Mocan & Semih Tumen & Belgi Turan, 2024. "The crime effect of refugees," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 43(2), pages 472-508, March.
    12. Melina Dritsaki & Chaido Dritsaki, 2024. "Immigration, Growth and Unemployment: Panel VAR Evidence From Ε.U. Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 19928-19963, December.
    13. Christian Dustmann & Yannis Kastis & Ian Preston, 2023. "Inequality and Immigration," RFBerlin Discussion Paper Series 2307, ROCKWOOL Foundation Berlin (RFBerlin).
    14. David Dorn & Josef Zweimüller, 2021. "Migration and Labor Market Integration in Europe," Journal of Economic Perspectives, American Economic Association, vol. 35(2), pages 49-76, Spring.
    15. Cristelli, Gabriele & Lissoni, Francesco, 2020. "Free movement of inventors: open-border policy and innovation in Switzerland," MPRA Paper 107433, University Library of Munich, Germany.
    16. Anna Boucher & Robert Breunig & Cecilia Karmel, 2022. "A Preliminary Literature Review on the Effect of Immigration On Australian Domestic Employment and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 263-272, June.
    17. Diego Marino Fages, 2023. "Migration and trust: Evidence on assimilation from internal migrants," Discussion Papers 2023-08, Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP).
    18. Michael Lokshin & Martin Ravallion, 2022. "A market for work permits," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(111), pages 471-499.
    19. Sagiri KITAO & Nozomi TAKEDA, 2025. "Endogenous Migration and the Macroeconomic Impact of Foreign Workers in Japan," Discussion papers 25110, Research Institute of Economy, Trade and Industry (RIETI).
    20. Alejandro Vega-Muñoz & Paloma Gónzalez-Gómez-del-Miño & Juan Felipe Espinosa-Cristia, 2021. "Recognizing New Trends in Brain Drain Studies in the Framework of Global Sustainability," Sustainability, MDPI, vol. 13(6), pages 1-27, March.
    21. McKenzie, David & Müller,Charlotte & Acosta, Pablo Ariel, 2025. "Where and How is Money Spent on International Migration and Refugees by World Bank Operational Projects ?," Policy Research Working Paper Series 11141, The World Bank.
    22. Christian Dustmann & Uta Schoenberg, 2025. "Linking Empirical Evidence to Theory: A Framework for Understanding Immigrations Labor Market Effects," RFBerlin Discussion Paper Series 2522, ROCKWOOL Foundation Berlin (RFBerlin).
    23. Capretti, Lisa & Centofanti, Francesca & Farcomeni, Alessio & Rosati, Furio, 2026. "Where You Arrive Matters: Local Conditions and Migration Duration. Evidence from Italian Registry Data," IZA Discussion Papers 18526, IZA Network @ LISER.

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