Migration Flashcards
(7 cards)
What is the place premium and who speaks about it?
Why is there a place premium?
- Clemens, Pritchett and Co-authors (2016) use census data and surveys to show the place premium of similar workers working in different countries.
Must be the A in the production function. Stuff like institutional quality etc .
What would be the benefit if migration was totally allowed?
If migration was freely allowed it would give gains of $65,000 billion dollars.
How could you show the impact of migration on a graph?
Short and long term.
At the first instance labour shifts outwards as the supply of labour increased so wages decrease
In the long term it might start shifting demand outwards.
In the graph of immigration how is each stakeholder impacted?
What does it depend on?
- Firms get a surplus
- immigrants get better wage than home country
- domestic workers lose out
- Whole country benefits in totality.
Depends on the labour being substitutes.
In empirical studies what is the actual impact of increasing migration?
Card (1990) Labour increased in Miami 7%, but no differential impacts on Miami resident’s wages
Friedberg (2001)
Emigration from Soviet Union to Israel, rose labor force by 12% in 4 years but no adverse impact on labour
No adverse impacts on local wages Tabellini (2020)
Hunt (1992)
However, In Dustman et al, 2017 there is evidence that czech workers in germany meant lower employment.
No boost in demand as Czechs spent in own economy.
What are the factors preventing immigration from decreasing wages?
Immigrations slow down mechanisation that replaces labour
1964 mexican farm laborers (Clemens et al, 2018)
Occupational upgrading for locals
Migrants willing to do tasks locals wont
innovation and entrepreneurship.
What are the dilemmas of immigration?
Identity politics and fear of cultural erosion.
