Technological Superiority and the Losses from Migration / Donald R. Davis, David E. Weinstein.

Format:

Book

Author/Creator:

Davis, Donald R.

Contributor:

National Bureau of Economic Research.

Weinstein, David E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8971.

NBER working paper series no. w8971

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2002.

Summary:

Two facts motivate this study. (1) The United States is the world's most productive economy. (2) The US is the destination for a broad range of net factor inflows: unskilled labor, skilled labor, and capital. Indeed, these two facts may be strongly related: All factors seek to enter the US because of the US technological superiority. The literature on international factor flows rarely links these two phenomena, instead considering one-at-a-time analyses that stress issues of relative factor abundance. This is unfortunate, since the welfare calculations differ markedly. In a simple Ricardian framework, a country that experiences immigration of factors motivated by technological differences always loses from this migration relative to a free trade baseline, while the other country gains. We provide simple calculations suggesting that the magnitude of the losses for US natives may be quite large $72 billion dollars per year or 0.8 percent of GDP.

Notes:

Print version record

May 2002.