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The potential gains, especially from freer immigration, are astounding. "The gains from eliminating migration barriers dwarf---by an order of a magnitude or tw
by greeneggs 11y ago
The potential gains, especially from freer immigration, are astounding.
"The gains from eliminating migration barriers dwarf---by an order of a magnitude or two---the gains from eliminating other types of barriers. For the elimination of trade policy barriers and capital flow barriers, the estimated gains amount to less than a few percent of world GDP. For labor mobility barriers, the estimated gains are often in the range of 50–150 percent of world GDP." [1]
A typical example:
"Take a male construction worker in the capital of Ghana. There isn’t much you could do to greatly raise his economic productivity in Ghana; access to better tools or training might make him modestly more productive. But if you let the exact same person emigrate to work at a construction site in any big U.S. city, his economic productivity would rise roughly 700% to 1,000%." [2]
[1] Clemens, Michael A. 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?" Journal of Economic Perspectives, 25(3): 83-106.
https://www.aeaweb.org/articles.php?doi=10.1257/jep.25.3.83 https://www.aeaweb.org/articles.php?doi=10.1257/jep.25.3.83
[2] http://www.cgdev.org/blog/trillion-dollar-bills-sidewalk-why-don%E2%80%99t-more-economists-study-emigration http://www.cgdev.org/blog/trillion-dollar-bills-sidewalk-why...
- soared 11y agoI really like this idea in theory. But in practice, even the given example is kind of broken. Would a random Ghana man be able to survive in the US? How much training and teaching would it take for them to actually be successful? Our culture and daily life are really not that similar. Undoubtedly there would still be a lot of economic gain for him, but the sheer logistics of it don't seem possible to overcome.
- retroam 11y agoThey are actually more similar than you would imagine. The national language is English and there is a decent size community in the bigger American cities that make it easier for a Ghanaian immigrant to assimilate.