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People Flows in Globalization

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Richard B. Freeman

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Abstract

People flows refers to the movement of people across international borders in the form of immigration, international student flows, business travel, and tourism. Despite its peripheral status in debates over globalization, the movement of people from low income to high income countries is fundamental in global economic development, with consequences for factor endowments, trade patterns, and transfer of technology. In part because people flows are smaller than trade and capital flows, the dispersion of pay for similarly skilled workers around the world exceeds the dispersion of the prices of goods and cost of capital. This suggests that policies that give workers in developing countries greater access to advanced country labor markets could raise global economic well-being considerably. The economic problem is that immigrants rather than citizens of immigrant-receiving countries benefit most from immigration. The paper considers "radically economic policies" such as auctioning immigration visas or charging sizeable fees and spending the funds on current residents to increase the economic incentive for advanced countries to accept greater immigration.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12315.

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Date of creation: Jun 2006
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Handle: RePEc:nbr:nberwo:12315

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  1. George J. Borjas, 1988. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Beine, Michel & Docquier, Frédéric & Rapoport, Hillel, 2003. "Brain Drain and LDCs’ Growth: Winners and Losers," IZA Discussion Papers 819, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Brown, Charles, 1988. "Minimum Wage Laws: Are They Overrated?," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 133-45, Summer. [Downloadable!] (restricted)
  4. Berry, R Albert & Soligo, Ronald, 1969. "Some Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 778-94, Sept./Oct. [Downloadable!] (restricted)
  5. Adsera, Alicia & Chiswick, Barry R., 2004. "Are There Gender and Country of Origin Differences in Immigrant Labor Market Outcomes across European Destinations?," IZA Discussion Papers 1432, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Adams, Richard H. Jr., 2003. "International migration, remittances, and the brain drain ; a study of 24 labor exporting countries," Policy Research Working Paper Series 3069, The World Bank. [Downloadable!]
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