Migration: Who Gains, Who Loses
نویسنده
چکیده
Arvind Panagariya Analytically as well as politically, migration is a more complex phenomenon than international trade. The latter involves two-way flows of goods and services that allow the real aggregate income to grow in each country involved. Therefore, the arguments for protection against imports typically rest on the detrimental effects on the income distribution or the existence of prior distortions in other markets. Migration involves one-way flows, which immediately requires us to distinguish between the “source” and “destination” countries. In addition, we must separately consider the welfare of the migrant himself and also decide whether his welfare forms a part of the source or destination country. In turn, since the migrant physically resides in the country of destination and cannot be excluded from consuming public goods, we are confronted with the issue of fiscal burden imposed by him on the native population. The literature on brain drain that experienced explosive growth in the 1970s and has been elegantly surveyed by Bhagwati and Rodriguez (1975) continues to provide a useful framework for analyzing many of the current issues in the migration debate. Therefore, my discussion below draws heavily on that literature. I begin with the introduction of the basic issues with the help of the conventional one-good, two-factor model.
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