A General Equilibrium Model of Migration and Poverty
Brigham Young University
12th January, 2017 (Thursday) at 3:00 PM
Venue : Seminar Room (First Floor)
Department of Economics, Delhi School of Economics
All are cordially invited
Most rich nations maintain very tight restrictions on immigration despite widespread opening of trade and international capital flows since World War II. This paper breaks new ground by assessing these barriers’ poverty implications, using a two-region, one-sector, dynastic growth model with a continuum of skills. Like other global studies of migration, I find that rich nation immigration impediments impose huge losses on the global economy. The analysis also implies that such barriers greatly increase global poverty, by 40% or more. This accords with other studies that conclude that opening rich nations to freer immigration could reduce poverty more than any other single policy shift.