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  5. Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?

  • Michael A. Clemens
Journal of Economic Perspectives
vol. 25, no. 3, Summer 2011
(pp. 83–106)
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Abstract

What is the greatest single class of distortions in the global economy? One contender for this title is the tightly binding constraints on emigration from poor countries. Vast numbers of people in low-income countries want to emigrate from those countries but cannot. How large are the economic losses caused by barriers to emigration? Research on this question has been distinguished by its rarity and obscurity, but the few estimates we have should make economists' jaws hit their desks. The gains to eliminating migration barriers amount to large fractions of world GDP—one or two orders of magnitude larger than the gains from dropping all remaining restrictions on international flows of goods and capital. When it comes to policies that restrict emigration, there appear to be trillion-dollar bills on the sidewalk.

Citation

Clemens, Michael, A. 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?" Journal of Economic Perspectives, 25 (3): 83–106. DOI: 10.1257/jep.25.3.83

JEL Classification

  • F02 International Economic Order
  • F22 International Migration
  • J11 Demographic Trends and Forecasts; General Migration

innovative

  • Posted by ANUPAM TYAGI
  • Posted on 10/5/2011 4:49:02 AM
This is a very innovative line of research on an important issue. There has been much discussion about globalization and gains from trade, and factor price equilization theorems. That economic convergence is eluding, and as experience shows it may actaully depend on the type of movement you write about. Could China have worked without expatriate Chinese, or for that matter India, or Russia, or Ireland, Israel, and others? This fits in right there in the debate.

Congratulations, for what is likely to become a very well cited paper.
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