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Optimal Migration: A World Perspective

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  • Jess Benhabib
  • Boyan Jovanovic

Abstract

We ask what level of migration would maximize world welfare. We find that skill-neutral policies are never optimal. An egalitarian welfare function induces a policy that entails moving mainly unskilled immigrants into the rich countries, whereas a welfare function skewed highly towards the rich countries induces an optimal policy that entails a brain-drain from the poor countries. For intermediate welfare functions that moderately favor the rich however, it is optimal to have no migration at all.

Suggested Citation

  • Jess Benhabib & Boyan Jovanovic, 2007. "Optimal Migration: A World Perspective," NBER Working Papers 12871, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12871
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