The Dynamic Implications of Liberalizing Global Migration

40 Pages Posted: 11 Feb 2014

See all articles by Marco Delogu

Marco Delogu

Universite du Luxembourg

Frédéric Docquier

Université catholique de Louvain; CREAM, Centre for Research on Environmental Appraisal & Management, UK; IZA Institute of Labor Economics

Joel Machado

Luxembourg Institute of Socio-Economic Research (LISER); Universite du Luxembourg - Faculty of Law, Economics and Finance

Date Written: January 31, 2014

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".

Keywords: migration, migration policy, liberalization, growth, human capital, fertility, inequality

JEL Classification: O150, F220, F630, I240

Suggested Citation

Delogu, Marco and Docquier, Frédéric and Machado, Joel, The Dynamic Implications of Liberalizing Global Migration (January 31, 2014). CESifo Working Paper Series No. 4596. Available at SSRN: https://ssrn.com/abstract=2393958

Marco Delogu

Universite du Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Frédéric Docquier (Contact Author)

Université catholique de Louvain ( email )

IRES
Place Montesquieu 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://perso.uclouvain.be/frederic.docquier/

CREAM, Centre for Research on Environmental Appraisal & Management, UK

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Joel Machado

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

Universite du Luxembourg - Faculty of Law, Economics and Finance ( email )

162a, avenue de la Faïencerie
Luxembourg-Limpertsberg, L-1511
Luxembourg

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
67
Abstract Views
741
rank
350,011
PlumX Metrics