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Efficiency Gains from the Elimination of Global Restrictions on Labour Mobility: An Analysis using a Multiregional CGE Model

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  • Iregui, Ana Maria

Abstract

We compute the world-wide efficiency gains from the elimination of global restrictions on labour mobility using a multiregional CGE model. A distinctive feature of our analysis is the introduction of a segmented labour market, as two types of labour are considered: skilled and unskilled. According to our results, when labour is a homogeneous factor, the elimination of global restrictions on labour mobility generates world-wide efficiency gains that could be of considerable magnitude. When the labour market is segmented and both skilled and unskilled labour migrate, welfare gains reduce since the benefits and losses of migration are not evenly distributed within each region. When only skilled labour migrates, the world-wide efficiency gains are smaller, since this type of labour represents a small fraction of the labour force in developing regions.
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  • Iregui, Ana Maria, 2003. "Efficiency Gains from the Elimination of Global Restrictions on Labour Mobility: An Analysis using a Multiregional CGE Model," WIDER Working Paper Series 027, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2003-27
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    Cited by:

    1. Eric Ng & John Whalley, 2008. "Visas and work permits: Possible global negotiating initiatives," The Review of International Organizations, Springer, vol. 3(3), pages 259-285, September.
    2. Moses, Jonathon W. & Letnes, Bjorn, 2003. "If People were Money: Estimating the Potential Gains from Increased International Migration," WIDER Working Paper Series 041, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:uwp:jhriss:v:52:y:2017:i:3:p:859-885 is not listed on IDEAS
    4. Rutten, Martine, 2008. "Medical migration : what can we learn from the UK's perspective ?," Policy Research Working Paper Series 4593, The World Bank.
    5. Yao Pan, 2017. "The Impact of Removing Selective Migration Restrictions on Education: Evidence from China," Journal of Human Resources, University of Wisconsin Press, vol. 52(3), pages 859-885.
    6. Moses, Jonathon W. & Letnes, Bjorn, 2004. "The Economic Costs to International Labor Restrictions: Revisiting the Empirical Discussion," World Development, Elsevier, vol. 32(10), pages 1609-1626, October.

    More about this item

    Keywords

    migration; applied CGE modelling; labour market segmentation;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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