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Richer countries are under pressure to respond to and suppress high levels of irregular migration reaching their borders. One prominent recommendation is for richer countries to expand opportunities for lawful or regular migration. Suppose they do. Will more regular migration simply raise migration overall, or will it substitute for and reduce irregular migration?
We study a natural experiment that excluded almost half a million Mexican ‘bracero’ seasonal agricultural workers from the United States, with the stated goal of raising wages and employment for domestic farm workers. We reject the wage effect of bracero exclusion required by the model in the absence of induced technical change, and fail to reject the hypothesis that exclusion had no effect on US agricultural wages or employment. Important mechanisms for this result include both adoption of less labor-intensive technologies and shifts in crop mix.
Boquillas del Carmen is a tiny village just over the Rio Grande from Big Bend National Park in Texas that experienced a tremendous decline when US authorities closed the border in 2002. For decades, the town’s economy depended on tourists crossing over to enjoy spectacular views of the Chisos Mountains while eating homemade enchiladas at the one or two restaurants in town. Then, some months after the attacks of September 11, 2001, the US government shut down all unofficial, unmanned border crossings with Mexico, including the one at Boquillas. Suddenly there were no more tourists.
In 2015, India's system of fiscal devolution underwent a radical transformation. This paper uses the experience of Brazil, China, and Mexico to draw important lessons on how India can use the opportunity of fiscal devolution to create a better system of health financing through better policy coordination between federal and local governments.
How can we create an immigration policy that works? That's the subject of a new CGD report called "Shared Border, Shared Future." Former Mexican president and CGD working group co-chair Ernesto Zedillo joins this week's podcast to discuss the need for a cooperative solutions to unlawful migration.