How does immigration affect incomes in the countries migrants go to, and how do rising incomes shape emigration from the countries they leave? The answers depend on whether people who migrate have higher or lower productivity than people who do not migrate.
Many governments seek to reduce emigration from low-income countries by encouraging economic development there. A large literature, however, observes that average emigration rates are higher in countries with sustained increases in GDP per capita than in either chronically poor countries or established rich countries.
LaMP aims to be the first organization that actively works to increase rights-respecting labor mobility, ensuring that workers can access employment opportunities abroad. The long-term goal is to plug labor market gaps in OECD countries while unlocking billions in income gains for people who fill needed jobs.
The arrival of a new leadership team in Brussels provides an opportunity for Europe to reinvigorate its role as a global development power and to build a true partnership with its continental neighbour, Africa. These tasks have never been more urgent.
Maximizing the Shared Benefits of Legal Migration Pathways: Lessons from Germany’s Skills Partnerships
Germany is one country piloting and implementing projects that can help alleviate such demographic pressures and maximize the potential mutual benefits of legal labor migration.
Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment - Working Paper 501
‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage gap can be used to measure gaps in the productivity of workers due to where they are, not who they are. This paper estimates the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where an economic crisis allocated guest work opportunities as-good-as-randomly among several thousand families. Guest work raised the return to poor families' labor by a factor of four, with little evidence of systematic fraud.
A Tool to Implement the Global Compact for Migration: Ten Key Steps for Building Global Skill Partnerships
The world needs better ways to manage international migration for this century. Those better ways finally have a roadmap: the Global Compact for Migration. And one promising tool is Global Skill Partnerships.
Many of the world’s 25 million refugees spend years struggling to provide for themselves or contribute fully to their host economies because they are legally barred from working or owning businesses. Granting refugees formal labor market access unlocks a range of benefits—for refugees, hosts, and global businesses.
Refugees can be immense economic contributors to the host communities where they settle, but to maximize their contributions, refugees need formal labor market access.
There are over 25 million refugees in the world today and most of them—especially those in developing countries—do not have formal labor market access (LMA). Granting refugees formal LMA has the potential to create substantial benefits for refugees and their hosts.
Policymakers and voters reasonably want to know what the effects of immigration are, to help them decide how much immigration there should be. But the effects of immigration are highly contingent on where, when, how, and who. We must ask a more fruitful question: how can different policy choices generate positive economic effects from immigration and avoid negative ones? Immigration is not inherently “good” or “bad.” Its effects depend on the context and the policy choices that shape it.
Alleviating Global Poverty: Labor Mobility, Direct Assistance, and Economic Growth - Working Paper 479
Simply allowing more labor mobility holds vastly more promise for reducing poverty than anything else on the development agenda. That said, the magnitude of the gains from large growth accelerations (and losses from large decelerations) are also many-fold larger than the potential gains from directed individual interventions and the poverty reduction gains from large, extended periods of rapid growth are larger than from targeted interventions and also hold promise (and have delivered) for reducing global poverty.
Can Regular Migration Channels Reduce Irregular Migration? Lessons for Europe from the United States
Lawful migration channels are often suggested as a tool to reduce unlawful migration, but often without much evidence that they work. There is evidence that lawful channels for migration between Mexico and the United States have suppressed unlawful migration, but only when combined with robust enforcement efforts.
The Need for a Bilateral Labor Agreement Between the US and Mexico, and the Responsibility for Leadership
From his keynote speech in Mexico City, Michael Clemens writes:
Mexico and the United States need a bilateral agreement to regulate the labor migration flows between these two neighboring countries. They have needed such an agreement my entire life.
Within a decade, Europe will require hundreds of thousands more nurses than it is likely to train. To meet the growing need, nurses will move in large numbers to Western Europe from other countries, including those in Eastern Europe. But Eastern Europe currently lacks nurses already relative to Western Europe, while Eastern European youths crave opportunities in skilled employment. How can nurses trained in Eastern Europe move to Western Europe in a way that benefits both regions?
The world urgently needs innovation to shape how international migration happens. Today people who are forcibly displaced are seen and treated largely as a burden, not as a resource that can bring shared benefits. A new type of private-public partnership can offer new opportunity for some of those who are forcibly displaced. It can be called a Global Skill Partnership, and this note illustrates how it might work for Syrians displaced into Turkey.
Testing for Repugnance in Economic Transactions: Evidence from Guest Work in the Gulf - Working Paper 463
Workers from poor countries can find enormous economic opportunity by working temporarily in a rich country. But agencies that fight global poverty do little to facilitate guest work. This may be because guest workers are perceived to typically suffer negative side effects that outweigh the benefits. This paper uses a natural experiment to test several perceptions of harmful side-effects on Indian guest workers in the Gulf. The research shows little evidence that the harmful side-effects often ascribed to guest work are typical and systematic, though this does not contradict the occurrence of many individual cases of harmful side-effects.
With the majority of all H-1B visas going to Indians, we study how US immigration policy coupled with the internet boom affected both the US and Indian economies, and in particular both countries’ IT sectors.