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The dynamic implications of liberalizing global migration

Author

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  • Marco DELOGU

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and University of Luxemburg)

  • Frédéric DOCQUIER

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and FNRS, National Fund for Scientific Research)

  • Joël MACHADO

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper quantitatively investigates the short- and long-run effects of liberalizing global migration on the world distribution of income. We develop and parametrize a dynamic model of the world economy with endogenous migration, fertility and education decisions. We identify bilateral migration costs and their legal component for each pair of countries and two classes of worker. Our analysis reveals that the effects of a liberalization on human capital accumulation, income and inequality are gradual and cumulative. In case of a complete liberalization, the world average level of GDP per worker increases by 20 percent in the short-run, and by more than 55 percent after 50 years. The world average index of inequality decreases and the liberalization path has stochastic dominance over the Baseline-As-Usual. These results are very robust to our identifying assumptions. We also analyze partial liberalization shocks: effi ciency and inequality e¤ects are roughly proportional to the "liberalization rate".

Suggested Citation

  • Marco DELOGU & Frédéric DOCQUIER & Joël MACHADO, 2013. "The dynamic implications of liberalizing global migration," LIDAM Discussion Papers IRES 2013029, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2013029
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Is fear of immigration fueled by facts or ignorance?
      by nawmsayn in ZeeConomics on 2015-01-02 00:59:44

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    Cited by:

    1. Marco Delogu & Frédéric Docquier & Joël Machado, 2018. "Globalizing labor and the world economy: the role of human capital," Journal of Economic Growth, Springer, vol. 23(2), pages 223-258, June.
    2. Frédéric Docquier & Joël Machado, 2017. "Income disparities, population and migration flows over the 21st century," Development Working Papers 421, Centro Studi Luca d'Agliano, University of Milano.
    3. Çağlar Özden & Christopher Parsons, 2016. "On the Economic Geography of International Migration," The World Economy, Wiley Blackwell, vol. 39(4), pages 478-495, April.
    4. Ravi Kanbur, 2017. "Citizenship, Migration and Opportunity," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 18(4), pages 429-441, October.
    5. Frédéric DOCQUIER & Joël MACHADO, 2015. "Remittance and Migration Prospects for the Twenty-First Century," Working Papers P133, FERDI.
    6. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    7. Frédéric Docquier & Joël Machado, 2016. "Global Competition for Attracting Talents and the World Economy," The World Economy, Wiley Blackwell, vol. 39(4), pages 530-542, April.
    8. Andrew Mountford & Hillel Rapoport, 2016. "Migration Policy, African Population Growth and Global Inequality," The World Economy, Wiley Blackwell, vol. 39(4), pages 543-556, April.

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    More about this item

    Keywords

    Migration; Migration policy; Liberalization; Growth; Human Capital; Fertility; Inequality;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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