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Lant Pritchett is a senior fellow at the Center for Global Development and professor of the practice of international development at Harvard's Kennedy School of Government, where he taught from 2000 to 2004 and from 2007 onward. Before rejoining the Kennedy School in 2007, he was lead socio-economist in the social development group of the South Asia region of the World Bank. He occupied various other positions at the World Bank during his tenure there, beginning in 1988. Pritchett was a team member on a number of prominent World Bank publications including Economic Growth in the 1990s: Learning from a Decade of Reforms (2005); Making Services Work for Poor People (World Development Report 2004); Assessing Aid: What Works, What Doesn't and Why (with David Dollar, 1998); and Infrastructure for Development (World Development Report 1994). He has published two books with Center for Global Development, Let Their People Come (2006) and The Rebirth of Education (2013). Pritchett has published over a hundred articles and papers (with more than 25 co-authors) on a wide range of topics, including state capability, labor mobility, and education, among many others. Originally from Idaho, Pritchett is the father of three children and now lives in an empty nest with his wife of 31 years.
Are your wages determined by what you know, or where you are? This paper estimates how the wages of workers in 42 developing countries would change if the same people could work in the United States. It uses a rich new database on over two million workers around the world. A worker from the median country would earn about 2.7 times as much in the US as at home. This means that (1) for many countries, the wage gaps caused by barriers to movement across international borders are among the largest known forms of wage discrimination; (2) these gaps represent one of the largest remaining price distortions in any global market; and (3) simply allowing labor mobility can reduce a given household’s poverty to a much greater degree than most known antipoverty interventions inside developing countries.
Data on the average income of a resident of Ecuador is easy to find. But until now there has been no data on the average income of a person born in Ecuador, regardless of where she or he lives. In this paper, research fellow Michael Clemens and non-resident fellow Lant Pritchett introduce a new dataset, income per natural: the mean annual income of persons born in a given country regardless of residence. Turns out that defining things this way makes a big difference, and not just for tiny nations. Income per natural differs by more than 10% from income per resident for dozens of countries including Vietnam, Kenya and Morocco. In other words, one of the largest sources of increased income for people in many parts of the developing world is moving to another country.
Increased labor mobility offers potentially huge gains for the developing and developed world, but migration is massively unpopular in rich countries. In this CGD Brief, non-resident fellow Lant Pritchett lays out a solution that is beneficial to poor people and potentially politically acceptable to rich country voters: temporary legal work programs negotiated bilaterally, with rich countries certifying labor shortages in specific industries and labor-sending countries ensuring that temporary workers return home. On Thursday, May 17th Lant will answer your questions live online at Ask CGD. Submit a question nowLearn more