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Efficiency Gains from the Elimination of Global Resstrictions on Labour Mobility: An Analisis Using a Multiregional CGE Model

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  • Ana María Iregui

Abstract

We compute the world- wide efficiency gaings from the elimination of global restrictions on labour mobility using a multiregional CGE model. A distinctive feature of our analysis is the introduction of a segmented labour market, as two types of labour are considered: Skilled and unskilled. According to our results, when labour is a homogeneous factor, the elimination of global restrictions on labour mobility generates world- wide efficiency gains that could be of considerable magnitude. When the labour market is segmented and both skilled and unskilled labour migrate, welfare gaings reduce since the benefits and losses of migration are not evenly distributed within each region.When only skilled labour migrates, the world-wide efficient gaings are smaller, since this type of labour represents a small fraction of the labour force in developings regions.

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  • Ana María Iregui, 2000. "Efficiency Gains from the Elimination of Global Resstrictions on Labour Mobility: An Analisis Using a Multiregional CGE Model," Borradores de Economia 146, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:146
    DOI: 10.32468/be.146
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    Cited by:

    1. Hendrik P. van Dalen, 2007. "Global Aging and Economic Convergence: A Real Option or Still a Case of Science Fiction?," Tinbergen Institute Discussion Papers 07-051/1, Tinbergen Institute.
    2. Marco Delogu & Frédéric Docquier & Joël Machado, 2018. "Globalizing labor and the world economy: the role of human capital," Journal of Economic Growth, Springer, vol. 23(2), pages 223-258, June.
    3. John Kennan, 2014. "Freedom of movement for workers," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-86, September.
    4. Rutten, Martine, 2008. "Medical migration : what can we learn from the UK's perspective ?," Policy Research Working Paper Series 4593, The World Bank.
    5. Adnan, Wifag, 2015. "Who gets to cross the border? The impact of mobility restrictions on labor flows in the West Bank," Labour Economics, Elsevier, vol. 34(C), pages 86-99.
    6. María del Pilar Esguerra U & Ana María Iregui B. & María Teresa Ramírez G., 2004. "Trade between Colombia and East Asia: An Analysis Using a CGE Model," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 22(45), pages 116-171, June.
    7. Michał Burzyński, 2018. "Trading Goods or Human Capital: The Gains and Losses from Economic Integration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(2), pages 503-536, April.
    8. Autsawin Suttiwichienchot & Nattapong Puttanapong, 2014. "A Study on Internal Labor Movement and Policy Multiplier in Thailand," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 2(3), pages 57-68.
    9. Eric Ng & John Whalley, 2008. "Visas and work permits: Possible global negotiating initiatives," The Review of International Organizations, Springer, vol. 3(3), pages 259-285, September.
    10. Michał BURZYŃSKI, 2014. "Trading Goods or Human Capital The Winners and Losers of Economic Integration," LIDAM Discussion Papers IRES 2014022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    11. Moses, Jonathon W. & Letnes, Bjorn, 2004. "The Economic Costs to International Labor Restrictions: Revisiting the Empirical Discussion," World Development, Elsevier, vol. 32(10), pages 1609-1626, October.
    12. Jonathon W. Moses & Bjørn Letnes, 2003. "If People were Money: Estimating the Potential Gains from Increased International Migration," WIDER Working Paper Series DP2003-41, World Institute for Development Economic Research (UNU-WIDER).
    13. Yao Pan, 2017. "The Impact of Removing Selective Migration Restrictions on Education: Evidence from China," Journal of Human Resources, University of Wisconsin Press, vol. 52(3), pages 859-885.

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    More about this item

    Keywords

    Migration; applied CGE modelling; labour market segmentation;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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