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Thread: The Economic Case For Open Borders

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    Registered User Inquistive is offline
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    Thumbs up The Economic Case For Open Borders

    Millions may move from poor world to rich without bidding down wages in the rich country relative to the developing one. True, a rapid burst of immigration might temporarily reduce wages. But if the pace of movement is slow enough to allow investment to adjust, borders could open without any wage dislocation in either origin or destination economies. Migrants themselves would benefit handsomely, however. In a new paper* John Kennan of the University of Wisconsin-Madison estimates that opening borders could raise the average wage of workers from developing countries by $10,100 a year, or more than 100%, thanks to the large rise in the incomes of those opting to migrate.

    The economic case for migration is similar to that for free trade. Trade benefits countries by letting workers specialise in activities in which they are relatively more productive, raising output. And the larger market created by trade spreads the fixed costs of innovation more thinly, encouraging the development of new goods and ideas. Governments began the long march towards trade liberalisation after grasping that its upsides outweigh its costs, leaving a surplus large enough to compensate the losers.
    Free exchange: Border follies | The Economist

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    Registered User Steupz's Avatar Steupz is offline
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    This thing reads like exploitation. Perhaps I need another read but are they also making the case that productivity increases hugely for the educated migrant as well?
    And if the increased wage doesn't match the increased productivity, I am not sure that benefits the welcoming nation more than in the short term.

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    where de crix Oneshot's Avatar Oneshot is offline
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    Quote Originally Posted by Steupz View Post
    This thing reads like exploitation. Perhaps I need another read but are they also making the case that productivity increases hugely for the educated migrant as well?
    And if the increased wage doesn't match the increased productivity, I am not sure that benefits the welcoming nation more than in the short term.
    i disagree, if people had the freedom to move, you would have less exploitation as the people would move on their own accord within the law.

    and in terms of productivity and wages, wages may stagnate or even fall in certain sectors if there is a flood of people, but that is self correcting. As the wages fall people would move away from the job function.

    it is win for employers as they get to select from the best of talent, and for individuals as they are no longer restricted to one location.

    you can compare two countries, the US where do not need a visa to move from state to state, however, in china you need a visa to move from the country to the urban area.

    with that being said, there should still be some form of controls, to prevent the unsavoury types from entering a country.

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