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Efficiency Gains From The Elimination Of Global Restrictions On Labour Mobility: An Analysis Using A Multiregional Cge Model

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  • Ana María Iregui

Abstract

We compute the world-wide efficiency gains 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 gains reduce since the benefits and losses of migration are not evenly distributed within each region. When only skilled labour migrates, the world-wide efficiency gains are smaller, since this type of labour represents a small fraction of the labour force in developing regions.

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  • Ana María Iregui, 2000. "Efficiency Gains From The Elimination Of Global Restrictions On Labour Mobility: An Analysis Using A Multiregional Cge Model," Borradores de Economia 2435, Banco de la Republica.
    • Handle: RePEc:col:000094:002435
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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).
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Rutten, Martine, 2008. "Medical migration : what can we learn from the UK's perspective ?," Policy Research Working Paper Series 4593, The World Bank.
    11. 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.
    12. 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).
    13. John Kennan, 2014. "Freedom of movement for workers," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-86, September.

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    Keywords

    Migration;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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