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The dynamic implications of liberalizing global migration

Author

Listed:
  • Frédéric DOCQUIER

    () (Université Catholique de Louvain)

  • Marco DELOGU

    (FERDI)

  • Joël MACHADO

    (FERDI)

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 : efficiency and inequality effects are roughly proportional to the «liberalization rate».

Suggested Citation

  • Frédéric DOCQUIER & Marco DELOGU & Joël MACHADO, 2014. "The dynamic implications of liberalizing global migration," Working Papers P88, FERDI.
  • Handle: RePEc:fdi:wpaper:1349
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Çağlar Özden & Christopher Parsons, 2016. "On the Economic Geography of International Migration," The World Economy, Wiley Blackwell, vol. 39(4), pages 478-495, April.
    2. 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.
    3. 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.
    4. 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.
    5. DELOGU Marco & DOCQUIER Frédéric & MACHADO Joël, 2017. "Globalizing labor and the world economy: the role of human capital," LISER Working Paper Series 2017-16, LISER.

    More about this item

    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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