Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93464
Authors: 
Delogu, Marco
Docquier, Frédéric
Machado, Joël
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4596
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 ac-cumulation, 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”.
Subjects: 
migration
migration policy
liberalization
growth
human capital
fertility
inequality
JEL: 
O15
F22
F63
I24
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.