"Conventional economic wisdom holds that the migration of unskilled labor from less developed countries to neighboring developed countries should be expected to narrow the wage gap between those countries, and thereby reduce the incentive for further migration. [The authors suggest that] if capital is mobile internationally this reasoning may be inappropriate. Instead, emigration of unskilled labor out of the less developed country provides an incentive for capital to leave the country, too. As a consequence, wage rates move in the same direction in each country, and the gap between wage rates across countries even may increase."
"Microeconomic simulations are performed to determine the impact of liberalized commodity trade on Mexican immigrant supply to the United States. The results suggest that a removal of trade barriers will reduce migration flows, but that the reduction will be fairly modest. Specifically, if both countries move from the levels of protection characteristic of the mid-1960s to completely free trade, the ratio of real U.S.-Mexican wages falls by roughly 18 percent. Using an upper bound for the range of empirical estimates of the wage elasticity of immigrant supply, this implies a maximum reduction in migration flows of 35 percent. A unilateral elimination of trade barriers by the United States reduces Mexican immigrant supply by a maximum of 14 percent."
"This paper examines the problem of guest-worker migration from an economy populated by identical, utility-maximizing individuals with finite working lives. The decision to migrate, the rate of saving while abroad, as well as the length of a migrant's stay in the foreign country, are all viewed as part of a solution to an intertemporal optimization problem. In addition to studying the microeconomic aspects of temporary migration, the paper analyses the determinants of the equilibrium flow of migrants, the corresponding domestic wage, and the level of welfare enjoyed by a typical worker. Effects of an emigration tax are also investigated."
"The paper extends Manning's model on education and balanced growth to include labour immigration. Each immigration unit is assumed to consist of one skilled worker and some unskilled members. The optimal immigration policy which maximizes the per capita steady-state consumption of the host country is derived. We show that optimal immigration policy can reduce the steady-state skilled labour ratio. More interesting still, contrary to the widespread belief that immigration of skilled workers hurts local skilled workers, it is the unskilled local workers whose interests are threatened by optimal immigration policy."
"This paper extends the standard (two-factor, one-good) model of international factor movements, to include unemployment due to a minimum-income guarantee within the capital-abundant country. From this country's perspective, we establish important departures from previous (full-employment) results. Most notably, our analysis shows that: (1) free factor mobility is worse than no mobility; (2) the optimal degree of labour migration is zero; and (3) national welfare can always be maximized by an optimal flow of capital. The analysis is then extended to examine: (1) illegal migration; (2) subsidization of employment; and (3) alternative views of unemployment."
American and foreign businesses, politicians, and media have all pointed to post-9/11 changes in visa policies as being responsible for the sharp decline in travel to the United States following the attacks. Using an empirical model which distinguishes the impact of visa policy from economic and country-specific factors, we find that changes in visa policy were not important contributors to the decrease in travel to the United States. Rather, the reduction in entries was largest among travelers who were not required to obtain a visa.