Junior Migration Webinar

International Migration Unions

Abstract

The prevalence of protectionist migration policies lead to the fact that more than 80% of the world population cannot work in any foreign country without a permit. Though a cooperation on labor mobility is an important driver of economic growth, joint economic benefits do not seem to suffice political demands. By endogenizing migration policy in a dynamic gravity setup, we study matching between countries and identify economic and political obstacles of complete liberalization of the labor movement. Based on the analysis of 9 OECD countries, we explain why geographic proximity, trade intensity, similar governmental attitudes and heterogeneity in a dominant type of ownership benefit labor mobility, while difference in technologies and capital intensity does not. Additionally, we argue how redistribution, voting mechanism, and the taste for freedom mutually determine the welfare gains and political viability of migration unions.

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