IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Resolved: On balance, legal barriers to immigration are more harmful than beneficial to society. PRO CASE ____________________________________________________________________________________ 2 SLOGANS PAGE _______________________________________________________________________________ 8 ECONOMIC BENEFITS _________________________________________________________________________ 9 INCREASE LIVING STANDARDS ________________________________________________________________ 11 INCREASE LIVING STANDARDS (TONGA) ______________________________________________________ 12 INCOME _____________________________________________________________________________________ 13 EMPIRICALLY PROVEN _______________________________________________________________________ 14 EMPIRICALLY PROVEN _______________________________________________________________________ 15 OTHER BARRIERS ____________________________________________________________________________ 16 POVERTY ____________________________________________________________________________________ 17 AT: BRAIN DRAIN ___________________________________________________________________________ 18 AT: WELFARE _______________________________________________________________________________ 19 AT: WELFARE _______________________________________________________________________________ 20 AT: HURTS LOW-SKILLED WORKERS _________________________________________________________ 21 AT: HURTS LOW-SKILLED WORKERS _________________________________________________________ 22 AT: BRAIN DRAIN ___________________________________________________________________________ 23 AT: HURTS WAGES __________________________________________________________________________ 24 AT: HURTS WAGES __________________________________________________________________________ 25 AT: HURTS WAGES __________________________________________________________________________ 26 AT: BRING BAD CULTURE ____________________________________________________________________ 27 AT: DON’T ASSIMILATE ______________________________________________________________________ 28 AT: IMMIGRANTS ARE UNHAPPY _____________________________________________________________ 29 AT: HURTS ORIGINAL COUNTRIES ____________________________________________________________ 30 AT: NO EFFECTS _____________________________________________________________________________ 31 AT: POLITICIANS ____________________________________________________________________________ 32 1 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Pro Case For too long the immigration debate has been marked by high emotion and little knowledge. Today we hope to change this by affirming the resolution, Resolved: On balance, legal barriers to immigration are more harmful than beneficial to society. To understand the resolution, we think ‘on balance,’ suggests a utilitarian calculation of impacts, in other words the team who proves a benefit to the most people should win the debate. So rather than just showing one or two instances where barriers to immigration are beneficial, the Con must prove that across the world more people are helped by legal barriers. On to the best contention, Contention 1: Poverty Alleviation Subpoint A: The Global Poor According to the United Nations United Nations. UN Sustainable Development Goals. Accessed 3 March 2017. http://www.un.org/sustainabledevelopment/poverty/ 836 million people still live in extreme poverty About one in five persons in developing regions lives on less than $1.25 per day The overwhelming majority of people living on less than $1.25 a day belong to two regions: Southern Asia and sub-Saharan Africa High poverty rates are often found in small, fragile and conflict-affected countries One in four children under age five in the world has inadequate height for his or her age Every day in 2014, 42,000 people had to abandon their homes to seek protection due to conflict And this doesn’t even tell the whole story because people can still struggle for access to adequate living conditions even without being in extreme poverty. As a recent analysis of World Bank data by the Pew Research Center explains, Rakesh Kochhar. Pew Research Center. “A Global Middle Class Is More Promise than Reality.” August 13, 2015. http://www.pewglobal.org/2015/07/08/a-global-middle-classis-more-promise-than-reality/ The first decade of this century witnessed an historic reduction in global poverty and a near doubling of the number of people who could be considered middle income. But the emergence of a truly global middle class is still more promise than reality. Poverty Plunges from 2001 to 2011 and the Global Middle-Income Population Increases, but Most People Remain Low Income. In 2011, a majority of the world’s population (56%) continued to live a low-income existence, compared with just 13% that could be considered middle income by a global standard, according to a new Pew Research Center analysis of the most recently available data. 2 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM And though there was growth in the middle-income population from 2001 to 2011, the rise in prosperity was concentrated in certain regions of the globe, namely China, South America and Eastern Europe. The middle class barely expanded in India and Southeast Asia, Africa, and Central America. Even those newly minted as middle class enjoy a standard of living that is modest by Western norms. As defined in this study, people who are middle income live on $10-20 a day, which translates to an annual income of $14,600 to $29,200 for a family of four. That range merely straddles the official poverty line in the United States—$23,021 for a family of four in 2011.1 And as World Bank economist Branko Milanovic has found, Sean McElwee. November 14, 2014. Interview with Branko Milanovic is a World Bank economist and development specialist. He's currently a visiting presidential professor at CUNY's Graduate Center and a senior scholar at the Luxembourg Income Study Center. “On Income Inequality: An Interview with Branko Milanovic.” Demos. http://www.demos.org/blog/11/14/14/income-inequality-interview-branko-milanovic It turns out that—depending on the year and how detailed your data are—some 50 to 60 percent of income differences between individuals in the world is due simply to the mean income differences between the countries where people live. In other words, if you want to be rich, you’d better be born in a rich country (or emigrate there). You can see that in the figure here, where very poorest people in the United States have an income level which is equal to that of the middle class in China or even upper middle class in India. So that's very striking. At least half of your income is determined by where you live, which for most people is where you were born. Then about 20 percent is due to the income level of your parents. So, your citizenship plus your parental background explain around two-thirds or even 70 percent of your income. Then, obviously, if I had data for gender, race, ethnicity and other things, which are similarly exogenously “given” to an individual, that percentage would go up, perhaps to more than 80 percent. When it comes to enforcing this system and keeping people limited in their productive abilities the number one culprit is legal barriers to immigration. Barriers to immigration lock people into unproductive economies for generations with no chance to escape. An elimination on barriers to immigration would cause a shift in world economic growth unlike anything we have ever seen before. Migration is more effective at bringing people out of poverty than any other form of aid. As economist Dr. Michael Clemens, senior fellow at the Center for Global Development has found, Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, 3 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 Researchers have built models of the world economy to estimate the gains from eliminating various barriers to trade, capital flows, and migration. Table 1 summarizes several recent estimates for policy barriers to trade, and (to my knowledge) all existing estimates for barriers to capital flows and migration. Even without delving into the details of these studies, the overall pattern is unmistakable and remarkable: The gains from eliminating migration barriers dwarf—by an order of a magnitude or two— the gains from eliminating other types of barriers. For the elimination of trade policy barriers and capital flow barriers, the estimated gains amount to less than a few percent of world GDP. For labor mobility barriers, the estimated gains are often in the range of 50–150 percent of world GDP. In fact, existing estimates suggest that even small reductions in the barriers to labor mobility bring enormous gains. In the studies of Table 1, the gains from complete elimination of migration barriers are only realized with epic movements of people—at least half the population of poor countries would need to move to rich countries. But migration need not be that large in order to bring vast gains. A conservative reading of the evidence in Table 2, which provides an overview of efficiency gains from partial elimination of barriers to labor mobility, suggests that the emigration of less than 5 percent of the population of poor regions would bring global gains exceeding the gains from total elimination of all policy barriers to merchandise trade and all barriers to capital flows. For comparison, currently about 200 million people—3 percent of the world—live outside their countries of birth (United Nations, 2009). Should these large estimated gains from an expansion of international migration outrage our economic intuition, or after some consideration, are they at least plausible? We can check these calculations on the back of the metaphorical envelope. Divide the world into a “rich” region, where one billion people earn $30,000 per year, and a “poor” region, where six billion earn $5,000 per year. Suppose emigrants from the poor region have lower productivity, so each gains just 60 percent of the simple earnings gap upon emigrating—that is, $15,000 per year. This marginal gain shrinks as emigration proceeds, so suppose that the average gain is just $7,500 per year. If half the population of the poor region emigrates, migrants would gain $23 tril- lion—which is 38 percent of global GDP. For nonmigrants, the outcome of such a wave of migration would have complicated effects: presumably, average wages would rise in the poor region and fall in the rich region, while returns to capital rise in the rich region and fall in the poor region. The net effect of these other changes could theoretically be negative, zero, or positive. But when combining these factors with the gains to migrants, we might plausibly imagine overall gains of 20–60 percent of global GDP. This accords with the gasp-inducing numbers in Tables 1 and 2. This calculation suggests a different kind of sanity check on the global estimates: comparing the price wedges caused by different types of international barriers. If the gains from eliminating barriers to labor mobility are greater than all remaining gains from eliminating barriers to trade and capital flows, we should expect to see proportionately greater international price wedges between different labor markets than between different goods and capital markets. In fact, this pattern is exactly what we see. Typical international trade costs, up to and including the border—not just policy barriers but all barriers, including distance, language, currency, and information—are the rough equivalent of a 74 percent ad valorem tariff, according to Anderson and van Wincoop (2004, p. 692)1; price wedges between the same goods in different national markets are also of this magnitude (for example, Bradford and Lawrence, 2004). For identical financial instruments, Lamont and Thaler (2003) find that the price rarely differs across the globe by more than 15 percent. Both these wedges look small next to the global price wedges for equivalent labor. In Clemens, Montenegro, and Pritchett (2008), we document gaps in real earnings for observably identical, low-skill workers exceeding 1,000 percent between the United States and countries like Haiti, Nigeria, and Egypt.2 Our analysis suggests that no plausible degree of unobservable differences between those who migrate and those who do not migrate comes close to explaining wage gaps that large. All of this suggests that the gains from reducing emigration barriers are likely to be enormous, measured in tens of trillions of dollars. But of course, the exact magnitudes of the estimates in Tables 1 and 2 are highly sensitive to modeling assumptions. For convenience, I will refer to the studies by their initials: Hamilton and Whalley (1984) [HW], Moses and Letnes (2004, 2005) [ML], Iregui (2005) [I], Klein and Ventura (2007) [KV], Walmsley and Winters (2005) [WW], and van der Mensbrugghe and Roland-Holst (2009) [VR]. The backbones of these studies vary from a static partial equilibrium model (HW and ML), to a static computable general equilibrium model (I, WW, VR), to a dynamic growth model 4 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM (KV). Some have two factors, labor and immobile capital (HW, ML, I), and some allow mobile capital plus third factors and international differences in total factor productivity (KV, WW, VR). Some include extensions that differentiate between skilled and unskilled labor (KV, I, WW, VR). Differences among the models’ conclusions hinge critically on how the effects of skilled emigration are accounted for; the specification and parameters of the production function (and thus the elasticities of supply and demand for labor); assumptions on international differences in the inherent productivity of labor and in total factor productivity; and the feasible magnitude of labor mobility.3 Assumptions on the mobility of other factors matter a great deal as well; in KV the majority of global efficiency gains from labor mobility require mobile capital to “chase” labor—as described by Hatton and Williamson (1994). Sub B: Solvency There are two reasons why this works: the first is simply wages. As Sebastian Mallaby a Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations explains, Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits To understand the economic stakes in Europe's refugee crisis, start in an unlikely place: the South Pacific island of Tonga. In 2006, the World Bank brokered a deal between this impoverished microstate and nearby New Zealand. Tonga would satisfy New Zealand’s unmet need for fruit pickers by sending some of its citizens to its wealthy neighbor; New Zealand would provide those citizens with employment. The experiment increased the income of participating Tongan workers by a factor of ten, an effect that dwarfed the potential benefit of any imaginable aid program. With this extraordinary leap in income came improvements in everything from the quality of workers’ homes to the school performance of their children. The program cost New Zealand nothing. There is an enormous benefit for immigrants who are able to get access to higher paying jobs. Not only does it helps the workers, but it allows them to remit money back home. Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits A large economics literature has sought to untangle migration’s national and regional impacts. From the point of view of countries from which migrants emigrate, the findings are mixed, but probably more positive than most people imagine. For one thing, emigrants from developing countries remit around $440 billion annually to relatives at home, a transfer that is three times the size of total official development aid worldwide. For another, the loss of productive workers may be less crippling to countries of origin than is frequently assumed. It is often asserted, for example, that Africa’s health services have suffered grievously from the exodus of trained nurses and doctors from the continent. But African countries with the largest outflows of physicians as a share of total population, such as Algeria, Ghana, or South Africa, tend to have the lowest rates of child mortality; apparently, enough doctors and nurses stay behind to prevent a breakdown. Likewise, it is easy to lament that Greece’s bankrupt economy has been irreparably 5 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM damaged by the brain drain of educated twenty-somethings. But Greece has an unemployment rate of 25 percent, and its economy was hardly benefiting from young people who weren’t working. Migrants, in other words, tend to leave places where productive opportunities are meager, and even as they leave, enough workers tend to stay behind to fill those opportunities that remain. Clearly, it would be grotesque to oppose the flood of Syrians to Europe on grounds of an alleged loss to Syria’s economy. 2nd is that it makes the economy over all more productive. As immigrants come in not only do they take the low-skilled jobs, allowing the native workers to move to more specialized work, but they create demand because they’re people and they spend money. For instance, Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits Consider a natural experiment in Denmark. Starting in the early 1990s, Denmark took in refugees from countries such as Bosnia, Iraq, and Somalia, boosting the share of non-EU migrants in the population from around 1.5 percent in 1994 to 4.7 percent in 2008. The officials in charge of this asylum program paid no heed to the skills, education, or job preferences of migrants, nor did they consider the skill gaps in the regions of Denmark to which the refugees were allocated. Rather, they settled people according to where public housing was available and later according to the location of their relatives. At least two-fifths of the newcomers lacked postsecondary education, few spoke Danish, and many came from cultures very distant from northern Europe’s. If an influx of outsiders was ever going to damage a host country’s economy, here surely was a ripe example. Remarkably, this damage did not materialize. A 2013 working paper by Mette Foged of the University of Copenhagen and Giovanni Peri of the University of California, Davis, considered the impact of this influx, particularly on one of Denmark’s most vulnerable groups: its low-skilled native workers. Foged and Peri’s study found that the influx of migrants to Denmark had no negative impact on wages. Instead, as refugees came in, low-skilled native-born workers shifted into different jobs, sometimes using their command of Danish to differentiate themselves from the newcomers. What is more, the number of low-skilled jobs in the economy increased: proof that humans can sometimes substitute for machines, in a reversal of the familiar teleology. Because of these adaptations, the wages and job prospects of low-skilled native workers either improved or stayed the same. The Danish study is especially striking because it disposes of the standard objection to the optimistic view of the economic effects of migration, which is that migrants harm native workers in ways that are invisible to researchers. Earlier studies from the United States had tracked the response of native wages to migration in particular towns, finding that wages of low-skilled workers in places with high migration rose roughly as fast as in those with low migration. Critics of those studies, however, objected that natives who suffered job losses might move, thereby disappearing from the sample. But Denmark’s workers are tracked nationally, no matter where they go, as are their fluctuating work fortunes. The positive verdict from the Danish study is all the more powerful because it held up even under this comprehensive tracking. 6 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM That means contrary to what the con will say, this doesn’t hurt the native workers. We see this time and time again in empirical examples like Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go If you ask entry-level economics students what they would expect a large influx of lowskilled immigrants to do to the economic prospects of natives, most will reason that the increase in the labor supply will reduce wages and increase unemployment, perhaps especially for poorer, less-educated locals. But professional economists have found something very different: study after study has shown that opening up labor markets to more people has not only increased the supply of labor but also raised the return on capital investments, accelerated economic growth, and thus increased the demand for labor -- improving the lives of natives as well as those of the immigrants. Collier deserves credit for embracing the consensus on this question. But the embrace is fleeting. His argument quickly leaves empirical evidence behind as he speculates about unprecedented bad economic effects that might happen in the future. He argues that although some rich countries do need more immigrants, others can absorb only a few and so should impose caps. The tipping point, he claims, hinges on a country’s population density. It would be “selfish” for countries with lots of open land, such as Australia or Canada, to shut their doors, he writes, yet justifiable for high-density countries, such as Denmark and the United Kingdom, to do so. But it makes little sense to use overall population density as a meas-ure of a country’s ability to absorb new people, since those who immigrate to Australia or Canada these days disproportionately flock to Sydney or Vancouver, not vacant homesteads. Collier’s fears that immigration will someday doom dense countries are also undermined by evidence showing that even massive inflows of people constitute an economic boon. The most dramatic modern example is the desegregation of South Africa. With the fall of apartheid in 1994, black migrants who had been exiled to remote areas flooded to major cities, where they began competing with white workers for jobs. The scale of this change dwarfed Collier’s worst nightmares of mass immigration to Europe. Yet the results are a staggering rejection of his simple analysis of supply and demand. As the economists Murray Leibbrandt and James Levinsohn have shown, between 1993 and 2008, the average income of black South Africans rose by 61 percent. And white South Africans suffered, well, nothing. Their average income also rose over the same period: by a staggering 275 percent. Recent U.S. history is not so different. From 1960 to 2011, the number of immigrants in the United States rose from less than ten million to more than 40 million, doubling the foreign-born share of the population. The question of whether this enormous influx of labor has raised or lowered wages and employment has spawned much debate among economists. But the distance between the two sides is quite small; estimates of the cumulative effect of decades of immigration on natives’ wages range from around negative three percent to positive one percent. No serious economists have found evidence of the large hypothetical effects that worry Collier. Considering the damage to the world’s poor that legal barriers to immigration enforce, we urge a Pro ballot. 7 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Slogans Page the immigration debate has been marked by “high emotion and little knowledge.” 8 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Economic Benefits The economic benefits of migration are likely to be measured in the tens of trillions of dollars, far outweighing any other global reforms Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 Researchers have built models of the world economy to estimate the gains from eliminating various barriers to trade, capital flows, and migration. Table 1 summarizes several recent estimates for policy barriers to trade, and (to my knowledge) all existing estimates for barriers to capital flows and migration. Even without delving into the details of these studies, the overall pattern is unmistakable and remarkable: The gains from eliminating migration barriers dwarf—by an order of a magnitude or two— the gains from eliminating other types of barriers. For the elimination of trade policy barriers and capital flow barriers, the estimated gains amount to less than a few percent of world GDP. For labor mobility barriers, the estimated gains are often in the range of 50–150 percent of world GDP. In fact, existing estimates suggest that even small reductions in the barriers to labor mobility bring enormous gains. In the studies of Table 1, the gains from complete elimination of migration barriers are only realized with epic movements of people—at least half the population of poor countries would need to move to rich countries. But migration need not be that large in order to bring vast gains. A conservative reading of the evidence in Table 2, which provides an overview of efficiency gains from partial elimination of barriers to labor mobility, suggests that the emigration of less than 5 percent of the population of poor regions would bring global gains exceeding the gains from total elimination of all policy barriers to merchandise trade and all barriers to capital flows. For comparison, currently about 200 million people—3 percent of the world—live outside their countries of birth (United Nations, 2009). Should these large estimated gains from an expansion of international migra- tion outrage our economic intuition, or after some consideration, are they at least plausible? We can check these calculations on the back of the metaphorical envelope. Divide the world into a “rich” region, where one billion people earn $30,000 per year, and a “poor” region, where six billion earn $5,000 per year. Suppose emigrants from the poor region have lower productivity, so each gains just 60 percent of the simple earnings gap upon emigrating—that is, $15,000 per year. This marginal gain shrinks as emigration proceeds, so suppose that the average gain is just $7,500 per year. If half the population of the poor region emigrates, migrants would gain $23 tril- lion—which is 38 percent of global GDP. For nonmigrants, the outcome of such a wave of migration would have complicated effects: presumably, average wages would rise in the poor region and fall in the rich region, while returns to capital rise in the rich region and fall in the poor region. The net effect of these other changes could theoretically be negative, zero, or positive. But when combining these factors with the gains to migrants, we might plausibly imagine overall 9 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM gains of 20–60 percent of global GDP. This accords with the gasp-inducing numbers in Tables 1 and 2. This calculation suggests a different kind of sanity check on the global estimates: comparing the price wedges caused by different types of international barriers. If the gains from eliminating barriers to labor mobility are greater than all remaining gains from eliminating barriers to trade and capital flows, we should expect to see proportionately greater international price wedges between different labor markets than between different goods and capital markets. In fact, this pattern is exactly what we see. Typical international trade costs, up to and including the border—not just policy barriers but all barriers, including distance, language, currency, and information—are the rough equivalent of a 74 percent ad valorem tariff, according to Anderson and van Wincoop (2004, p. 692)1; price wedges between the same goods in different national markets are also of this magnitude (for example, Bradford and Lawrence, 2004). For identical financial instruments, Lamont and Thaler (2003) find that the price rarely differs across the globe by more than 15 percent. Both these wedges look small next to the global price wedges for equivalent labor. In Clemens, Montenegro, and Pritchett (2008), we document gaps in real earnings for observably identical, low-skill workers exceeding 1,000 percent between the United States and countries like Haiti, Nigeria, and Egypt.2 Our analysis suggests that no plausible degree of unobservable differences between those who migrate and those who do not migrate comes close to explaining wage gaps that large. All of this suggests that the gains from reducing emigration barriers are likely to be enormous, measured in tens of trillions of dollars. But of course, the exact magnitudes of the estimates in Tables 1 and 2 are highly sensitive to modeling assumptions. For convenience, I will refer to the studies by their initials: Hamilton and Whalley (1984) [HW], Moses and Letnes (2004, 2005) [ML], Iregui (2005) [I], Klein and Ventura (2007) [KV], Walmsley and Winters (2005) [WW], and van der Mensbrugghe and Roland-Holst (2009) [VR]. The backbones of these studies vary from a static partial equilibrium model (HW and ML), to a static computable general equilibrium model (I, WW, VR), to a dynamic growth model (KV). Some have two factors, labor and immobile capital (HW, ML, I), and some allow mobile capital plus third factors and international differences in total factor productivity (KV, WW, VR). Some include extensions that differentiate between skilled and unskilled labor (KV, I, WW, VR). Differences among the models’ conclusions hinge critically on how the effects of skilled emigration are accounted for; the specification and parameters of the production function (and thus the elasticities of supply and demand for labor); assumptions on international differences in the inherent productivity of labor and in total factor productivity; and the feasible magnitude of labor mobility.3 Assumptions on the mobility of other factors matter a great deal as well; in KV the majority of global efficiency gains from labor mobility require mobile capital to “chase” labor—as described by Hatton and Williamson (1994). 10 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Increase Living Standards Lifting barriers to immigration is enormously beneficial to living standards around the world. More so than any other form of increasing GDP. Tonga example proves. Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits To understand the economic stakes in Europe's refugee crisis, start in an unlikely place: the South Pacific island of Tonga. In 2006, the World Bank brokered a deal between this impoverished microstate and nearby New Zealand. Tonga would satisfy New Zealand’s unmet need for fruit pickers by sending some of its citizens to its wealthy neighbor; New Zealand would provide those citizens with employment. The experiment increased the income of participating Tongan workers by a factor of ten, an effect that dwarfed the potential benefit of any imaginable aid program. With this extraordinary leap in income came improvements in everything from the quality of workers’ homes to the school performance of their children. The program cost New Zealand nothing. As in Tonga, so in Europe and across the world: the cross-border movement of people can boost prosperity more powerfully than other forms of globalization. Trade liberalization can expand countries’ output by a few percentage points—worth having, to be sure, but generally not transformative. International capital flows can in principle improve the allocation of the world’s savings, but they can also misfire, triggering crises. Migration, in contrast, can generate vast increases in living standards. “The gains to eliminating [migration] barriers amount to large fractions of world GDP,” the development scholar Michael Clemens has argued, that are “one or two orders of magnitude larger than the gains from dropping all remaining restrictions on international flows of goods and capital.” 11 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Increase Living Standards (Tonga) Labor mobility between Tonga and New Zealand is one of the most effective development policies ever. Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. Sep 15, 2016. “The South Pacific Secret to Breaking the Poverty Cycle.” http://www.huffingtonpost.com/michael-clemens/the-south-pacific-secret-to-breakingthe-poverty-cycle_b_8135780.html It started in the South Pacific in 2006. Tonga is a poor country, with few good jobs and at least a third of the population in poverty. New Zealand is a rich producer of winegrapes and other fruits, where farm labor is hard to find. World Bank economist Manjula Luthria and many colleagues helped the two countries strike a deal, together with other poor countries in the region: Tonga and others would provide the labor New Zealand needed, for jobs that were the opportunity of a lifetime for Tongan workers. It was a big blow against poverty. The average Tongan household that participated was earning just NZ$1,400 per year before these jobs. The average worker who participated earned NZ$12,000 for just a few months of work. It multiplied lowincome workers’ earnings by a factor of 10. Almost no other antipoverty project you’ve ever heard of can claim that. Imagine what that did to poverty. Well, you don’t need to imagine, because the World Bank rigorously evaluated the impact of the project on families in Tonga. It followed participating and nonparticipating households, from 2007 to 2010, and compared them. The project caused big increases in subjective and material well-being, durable assets, home improvement, financial access, and children’s schooling. The study’s conclusion: This project was “among the most effective development policies evaluated to date.” And it did that not by taking money away from New Zealanders, but by adding value to the New Zealand economy. What’s working against poverty? International labor mobility. So you might think that projects like this — among the most effective ever evaluated — would be at the center of the global antipoverty agenda. You might think that the World Bank and other aid agencies would scour the globe for similar opportunities, as a centerpiece of their activity. You’d be wrong. 12 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Income Immigration has huge effects on income. 97% of the world lives in the country they were born in and 60% of the variance in their income is based on where they live Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go Collier’s second argument is that “although international migration responds to global inequality, it does not significantly change it.” Here, his logic is circular, since a key reason immigration has not reduced global inequality is that it is so tightly constrained. According to the economist Branko Milanovic, 60 percent of the variance in real incomes worldwide can be explained solely by one’s country of residence. Yet immigration is a tiny phenomenon: 97 percent of all people live in the country they were born in. Collier’s argument is akin to claiming that freeing a slave will not improve his earnings because while enslaved, he has earned little in the labor market. 13 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Empirically Proven All empirics suggest Pro. No historical examples of major negatives suggest that arguments against immigration are just fear mongering Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 Economics knows little about the mechanisms and magnitudes of such exter- nalities at the destination, particularly under large-scale emigration. These deserve study. But there is little reason at present to think that they would greatly alter the message of Tables 1 and 2. First, the literature contains no documented case of large declines in GDP or massive declines in public-service provision at the destination caused by immigration. Second, century-old issues of the American Economic Review and the Journal of Political Economy extensively discuss concerns that any further emigration might degrade the American economy and society (for example, Hall, 1913; Kohler, 1914). Since then the American population has quadrupled—with much of the rise coming from increasingly diverse immigration to already settled areas—and the United States remains the world’s leading economy, with much greater availability of publicly-funded amenities than a century ago. Third, there are also many plausible positive externalities from increased immigration. These include spatial aggregation economies in high-skill labor (for example, Glaeser and Maré, 2001) and the effects of low-skill labor availability on the productivity of high-skill labor, particularly women’s labor (for example, Kremer and Watt, 2009; Cortes and Tessada, forthcoming). Fourth, all serious economic studies of the aggregate fiscal effects of immigration have found them to be very small overall— small and positive at the federal level (Auerbach and Oreopoulos, 1999; Lee and Miller, 2000), small and negative at the state and local level (Congressional Budget Of ce, 2007). 14 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Empirically Proven Economists have done little research on the total effects of immigration flows, thus you should prefer our empirical examples Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 The available evidence suggests that the gains to lowering barriers to emigration appear much larger than gains from further reductions in barriers to goods trade or capital flows—and may be much larger than those available through any other shift in a single class of global economic policy. Indeed, “some big bills have not been picked up on the routes that lead from poor to rich countries” (Olson, 1996). Research economists, however, write relatively little about emigration. The term “international trade” is 13 times more frequent than “international migration” in all the published article abstracts contained in the Research Papers in Economics (RePEc) archive. Furthermore, economists focus on arrival, not departure: in RePEc, “immigration” is four times as frequent as “emigration.” 15 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Other Barriers Even after lifting visa barriers, there will still be other barriers to immigration Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 There are at least two fundamental problems with this idea. First, it assumes that skilled labor emigration is not already taxed. But many skilled workers face binding migration restrictions that are the economic equivalent of large taxes. The United States strictly rations its visas for temporary and permanent employment- based skilled migration, especially from large countries like India, and most physicians from the developing world face large nonvisa migration barriers such as the requirement to repeat medical residency for U.S. licensing. Just as nontariff trade barriers have a tariff equivalent, quotas and licensing restrictions on the movement of skilled workers have a migration tax equivalent. International gaps in real earnings for high-skill workers are very high: 500–1,000 percent for some professors, computer programmers, and health workers (Clemens, 2009). Even if only a small fraction of these gaps is due to policy restrictions, the economic equivalent of a large emigration tax is already broadly applied. 16 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM Poverty United Nations. UN Sustainable Development Goals. Accessed 3 March 2017. http://www.un.org/sustainabledevelopment/poverty/ 836 million people still live in extreme poverty About one in five persons in developing regions lives on less than $1.25 per day The overwhelming majority of people living on less than $1.25 a day belong to two regions: Southern Asia and sub-Saharan Africa High poverty rates are often found in small, fragile and conflict-affected countries One in four children under age five in the world has inadequate height for his or her age Every day in 2014, 42,000 people had to abandon their homes to seek protection due to conflict Poverty doesn’t tell the whole story. There isn’t a global move toward a middle class. Rakesh Kochhar. “A Global Middle Class Is More Promise than Reality.” August 13, 2015. http://www.pewglobal.org/2015/07/08/a-global-middle-class-is-more-promisethan-reality/ The first decade of this century witnessed an historic reduction in global poverty and a near doubling of the number of people who could be considered middle income. But the emergence of a truly global middle class is still more promise than reality. Poverty Plunges from 2001 to 2011 and the Global Middle-Income Population Increases, but Most People Remain Low Income. In 2011, a majority of the world’s population (56%) continued to live a low-income existence, compared with just 13% that could be considered middle income by a global standard, according to a new Pew Research Center analysis of the most recently available data. And though there was growth in the middle-income population from 2001 to 2011, the rise in prosperity was concentrated in certain regions of the globe, namely China, South America and Eastern Europe. The middle class barely expanded in India and Southeast Asia, Africa, and Central America. Even those newly minted as middle class enjoy a standard of living that is modest by Western norms. As defined in this study, people who are middle income live on $1020 a day, which translates to an annual income of $14,600 to $29,200 for a family of four. That range merely straddles the official poverty line in the United States— $23,021 for a family of four in 2011.1 17 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Brain Drain Immigrants move to find better economic opportunities, but enough people stay behind to fill the need of their home country. Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits A large economics literature has sought to untangle migration’s national and regional impacts. From the point of view of countries from which migrants emigrate, the findings are mixed, but probably more positive than most people imagine. For one thing, emigrants from developing countries remit around $440 billion annually to relatives at home, a transfer that is three times the size of total official development aid worldwide. For another, the loss of productive workers may be less crippling to countries of origin than is frequently assumed. It is often asserted, for example, that Africa’s health services have suffered grievously from the exodus of trained nurses and doctors from the continent. But African countries with the largest outflows of physicians as a share of total population, such as Algeria, Ghana, or South Africa, tend to have the lowest rates of child mortality; apparently, enough doctors and nurses stay behind to prevent a breakdown. Likewise, it is easy to lament that Greece’s bankrupt economy has been irreparably damaged by the brain drain of educated twenty-somethings. But Greece has an unemployment rate of 25 percent, and its economy was hardly benefiting from young people who weren’t working. Migrants, in other words, tend to leave places where productive opportunities are meager, and even as they leave, enough workers tend to stay behind to fill those opportunities that remain. Clearly, it would be grotesque to oppose the flood of Syrians to Europe on grounds of an alleged loss to Syria’s economy. 18 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Welfare Immigrants are far more productive to the workforce and far less of a burden on public services than native born citizens in the UK Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits For receiving countries, meanwhile, the verdict on migration is even more favorable. A good example of the benefits is to be found in the United Kingdom—despite the fact that many Britons deeply resent immigrants. Contrary to popular mythology, the United Kingdom’s immigrants are, on average, better educated, more productive, and less of a burden on public services than native-born citizens. Almost half of the Britishborn work force left school at 16 or younger; fewer than one in five foreign-born workers abandoned the classroom so early. At the other end of the spectrum, 46 percent of recent immigrants to the United Kingdom in 2005 stayed in education until age 21 or beyond; only 16 percent of native Britons were as well educated. Meanwhile, just over a third of British residents are either too young or too old to work and pay taxes, whereas the vast majority of migrants are in the prime of their productive years. In London, where 37 percent of residents were born abroad, migrants account for fully 60 percent of the labor force in parts of the city. 19 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Welfare Immigrants contribute far more to public welfare programs than they take because they move to work, and are generally younger than the native population Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go Nor are governments providing charity to immigrants, as Collier contends. Ignoring the large literature documenting the positive contribution of immigrants to public coffers, he cites a single study that offers an entirely theoretical model of how immigrants could strain the Scandinavian welfare state. But Collier’s conclusions require empirical data. These exist -- although not in the pages of Exodus -- and they suggest the opposite of what Collier asserts. In a 2013 study of 27 countries, the Organization for Economic Cooperation and Development (OECD) found that immigrants contribute an average of $4,400 more per household to the government than they receive in benefits each year. For 20 of these countries, immigrants’ net fiscal contribution was positive; in the United States, that figure was around $11,000 per immigrant household. These numbers should not come as a surprise, since immigrants tend to be younger than natives, and most of them move to work, not to qualify for benefits. Their age alone means that they will work longer (thus paying more in taxes) than natives and will remain healthy longer (thus receiving less in benefits). 20 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Hurts Low-Skilled Workers This is a nice story but studies show that it is false for 2 reasons: 1) workers can shift to work that emphasizes native language abilities and 2) workers compete with automation so immigrants take jobs from robots, not from other workers. Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits Migrants, then, boost output and are net contributors to the United Kingdom’s public finances. But do they nonetheless harm low-skilled native workers by flooding the labor market and depressing wages? At first glance, this is a plausible story: migrants often compete for low-skilled jobs despite having good educational qualifications. But studies in the United Kingdom and in the United States have shown that migrants do surprisingly little to depress wages for low-skilled native workers. One reason may be that low-skilled natives can shift into occupations that place a premium on English-language skills, for which migrants represent limited competition. Another may be that workers compete not just with one another but also with machines, so that when migrants swell the labor force, businesses spend less on automation and hire more workers. The supply of jobs thus rises to match the increased pool of job seekers, and wages remain more or less unaltered. 21 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Hurts Low-Skilled Workers The Denmark example shows that native workers are able to shift so that wages and jobs either stayed the same or improved with the influx of immigrants Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits Consider a natural experiment in Denmark. Starting in the early 1990s, Denmark took in refugees from countries such as Bosnia, Iraq, and Somalia, boosting the share of non-EU migrants in the population from around 1.5 percent in 1994 to 4.7 percent in 2008. The officials in charge of this asylum program paid no heed to the skills, education, or job preferences of migrants, nor did they consider the skill gaps in the regions of Denmark to which the refugees were allocated. Rather, they settled people according to where public housing was available and later according to the location of their relatives. At least two-fifths of the newcomers lacked postsecondary education, few spoke Danish, and many came from cultures very distant from northern Europe’s. If an influx of outsiders was ever going to damage a host country’s economy, here surely was a ripe example. Remarkably, this damage did not materialize. A 2013 working paper by Mette Foged of the University of Copenhagen and Giovanni Peri of the University of California, Davis, considered the impact of this influx, particularly on one of Denmark’s most vulnerable groups: its low-skilled native workers. Foged and Peri’s study found that the influx of migrants to Denmark had no negative impact on wages. Instead, as refugees came in, low-skilled native-born workers shifted into different jobs, sometimes using their command of Danish to differentiate themselves from the newcomers. What is more, the number of low-skilled jobs in the economy increased: proof that humans can sometimes substitute for machines, in a reversal of the familiar teleology. Because of these adaptations, the wages and job prospects of low-skilled native workers either improved or stayed the same. The Danish study is especially striking because it disposes of the standard objection to the optimistic view of the economic effects of migration, which is that migrants harm native workers in ways that are invisible to researchers. Earlier studies from the United States had tracked the response of native wages to migration in particular towns, finding that wages of low-skilled workers in places with high migration rose roughly as fast as in those with low migration. Critics of those studies, however, objected that natives who suffered job losses might move, thereby disappearing from the sample. But Denmark’s workers are tracked nationally, no matter where they go, as are their fluctuating work fortunes. The positive verdict from the Danish study is all the more powerful because it held up even under this comprehensive tracking. 22 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Brain Drain If brain drain were true African countries seeing the highest number of doctors leaving should have the worst health care, but that’s not the case. Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 Human capital externalities are, it turns out, hard to locate and measure in the wild. The most commonly cited example of externalities that emigrants might impose on those remaining in the origin country involves healthcare workers. But if human capital externalities from health workers were a first-order determinant of basic health conditions, African countries experiencing the largest out flows of doctors and nurses would have systematically worse health conditions than other parts of Africa. In fact, those countries have systematically better health conditions (Clemens, 2007). More broadly, if the external effects of schooling were major and straightforward determi- nants of economic development, the vast increases in schooling levels across the world since 1960 would have been accompanied by a substantial rise in total factor produc- tivity. As Pritchett (2001) points out, nothing like that happened in poor countries. 23 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Hurts Wages Historically wages have not been driven down with large reductions in barriers to immigration Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 Of course, these elasticities could be different at much higher levels of emigration. The literature gives no clear support for such a pattern, however, even under greatly increased migration. In historical cases of large reductions in barriers to labor mobility between high-income and low-income populations or regions, those with high wages have not experienced a large decline. For example, wages of whites in South Africa have not shown important declines since the end of the apartheid regime (Leibbrandt and Levinsohn, 2011), despite the total removal of very large barriers to the physical movement and occupational choice of a poor population that outnumbered the rich population six to one. The recent advent of unlimited labor mobility between some Eastern European countries and Great Britain, though accompanied by large and sudden migration flows, has not caused important declines in British wages (Blanch ower and Shadforth, 2009). 24 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Hurts Wages Societies don’t make decisions based purely on monetary justifications. We must take into account the whole picture Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 Further, even if emigrants modestly depress wages when they arrive at the destination, this does not justify restricting movement by the standard welfare economics analysis. Such effects represent “pecuniary” externalities rather than “technical” externalities. The human capital externalities discussed in the previous section, along with common examples like belching smokestacks, are examples of technical externalities. Pecuniary externalities, in contrast, operate through the price mechanism: for example, my decision not to place a bid on the house you are selling may lower the price you can receive from an alternative buyer. Pecuniary externalities are a near-universal feature of economic decisions. In standard economic analysis, they offer no welfare justification for taxation or regulation of those decisions.7 For example, research on domestic labor movements has found—to the surprise of few—that movement of labor from one city to another tends to modestly lower wages at the destination (Boustan, Fishback, and Cantor, 2010), and that the entry of women into the labor force can modestly lower men’s wages (Acemog ̆lu, Autor, and Lyle, 2004). However, no economist would argue that these facts alone signify negative externalities that reduce social welfare and should be adjusted with a Pigovian tax on those who move between cities or on women entering the work- force, because these externalities seem to be almost purely pecuniary. Similarly, economists would be virtually unanimous against imposing a tax on new domestic competitors on the grounds that they imposed costs on existing firms, because again such externalities are pecuniary. Of course, this argument need not imply that policies to help low-wage U.S. workers in some manner are socially undesirable, only that such policies should be based on concerns over equity or building human capital, rather than on standard efficiency justifications. 25 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Hurts Wages The argument that an influx of immigrants would decrease the wages is an assumption that isn’t backed up by data. All empirical examples show the opposite is true Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go If you ask entry-level economics students what they would expect a large influx of low-skilled immigrants to do to the economic prospects of natives, most will reason that the increase in the labor supply will reduce wages and increase unemployment, perhaps especially for poorer, less-educated locals. But professional economists have found something very different: study after study has shown that opening up labor markets to more people has not only increased the supply of labor but also raised the return on capital investments, accelerated economic growth, and thus increased the demand for labor -- improving the lives of natives as well as those of the immigrants. Collier deserves credit for embracing the consensus on this question. But the embrace is fleeting. His argument quickly leaves empirical evidence behind as he speculates about unprecedented bad economic effects that might happen in the future. He argues that although some rich countries do need more immigrants, others can absorb only a few and so should impose caps. The tipping point, he claims, hinges on a country’s population density. It would be “selfish” for countries with lots of open land, such as Australia or Canada, to shut their doors, he writes, yet justifiable for high-density countries, such as Denmark and the United Kingdom, to do so. But it makes little sense to use overall population density as a meas-ure of a country’s ability to absorb new people, since those who immigrate to Australia or Canada these days disproportionately flock to Sydney or Vancouver, not vacant homesteads. Collier’s fears that immigration will someday doom dense countries are also undermined by evidence showing that even massive inflows of people constitute an economic boon. The most dramatic modern example is the desegregation of South Africa. With the fall of apartheid in 1994, black migrants who had been exiled to remote areas flooded to major cities, where they began competing with white workers for jobs. The scale of this change dwarfed Collier’s worst nightmares of mass immigration to Europe. Yet the results are a staggering rejection of his simple analysis of supply and demand. As the economists Murray Leibbrandt and James Levinsohn have shown, between 1993 and 2008, the average income of black South Africans rose by 61 percent. And white South Africans suffered, well, nothing. Their average income also rose over the same period: by a staggering 275 percent. Recent U.S. history is not so different. From 1960 to 2011, the number of immigrants in the United States rose from less than ten million to more than 40 million, doubling the foreign-born share of the population. The question of whether this enormous influx of labor has raised or lowered wages and employment has spawned much debate among economists. But the distance between the two sides is quite small; estimates of the cumulative effect of decades of immigration on natives’ wages range from around negative three percent to positive one percent. No serious economists have found evidence of the large hypothetical effects that worry Collier. 26 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Bring Bad Culture The idea that immigrants bring their countries dysfunctions with them is historically inaccurate. Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go But if you buy the argument that immigrants come from culturally inferior countries, it leads to some strange historical conclusions. For example, between 1850 and 1913, more than a fifth of the populations of Norway, Sweden, and the United Kingdom emigrated en masse, landing in countries with wages several times higher, such as Argentina and Canada. Yet it would be difficult to claim that the United Kingdom and Scandinavia possessed broken social models at the time or that immigrants from these places infected their adopted countries with dysfunction they brought from home. 27 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Don’t assimilate Not only do immigrants benefit societies and neighborhoods, they are assimilating faster than ever before Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go In fact, immigration has been widely shown to have many positive effects. For example, economists have found that crime is significantly lower in the English and Welsh neighborhoods in the United Kingdom with the largest immigrant inflows and that immigration raises local property values in Spain and the United States. But Collier makes no mention of such research. Nor does he account for the evidence that undermines his assertion that “culturally distant” immigrants from poor countries fail to assimilate in rich countries. And such evidence is abundant. The Manhattan Institute, a conservative think tank, has compiled an “assimilation index” of immigrants in the United States that measures such factors as labor-force participation, earnings, English fluency, intermarriage, legal naturalization, and military service. After Canadians, it turns out that the highest-scoring groups come from the Philippines, Cuba, and Vietnam -- hardly countries with social institutions mirroring those of the United States. Indeed, as U.S. immigration has accelerated, so has integration: the institute’s researchers found that “immigrants of the past quarter-century have assimilated more rapidly than their counterparts of a century ago, even though they are more distinct from the native population upon arrival.” 28 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Immigrants are Unhappy Their logic is flawed. People should be free to make their own choices about their happiness Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go This reasoning is bizarre. Using the same logic, one could make the case for barring mothers from working outside the home, noting, accurately, that women with children who work report more sadness and stress than those who do not work. To be blunt: polls showing that immigrants are no happier after leaving home do not justify taking away people’s right to move freely. Yet the survey evidence Collier cites does reveal a dark side to immigration. In many countries, especially in the Persian Gulf, immigrant workers enjoy few legal protections, have their passports seized by their employers, and are locked into a single company, making them easy targets for exploitation. Collier recognizes the risks that immigrants of precarious legal status face and makes a persuasive case for granting legal amnesty to undocumented workers in rich countries. That conclusion is correct and should be extended further: aiding the victims, not punishing them with quotas and deportations, is the right response to abuse in the labor market. 29 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Hurts Original Countries There is no evidence to support the argument that forcing people to remain in their countries will make their countries more productive. People choose to flee countries like Haiti BECAUSE they can’t be more productive Michael Clemens and Justin Sandefur. Jan/Feb 2014. Michael Clemens is a Senior Fellow at the Center for Global Development and Justin Sandefur is a Research Fellow at the Center for Global Development. “Let the People Go: The Problem With Strict Migration Limits.” Foreign Affairs. https://www.foreignaffairs.com/reviews/reviewessay/2013-12-16/let-people-go But once again, Collier is not satisfied to let historical experience guide policy. He speculates that increased emigration from poor countries could someday prove harmful and concludes that rich governments should cap immigration as an act of compassion. In making that argument, Collier first claims that retaining skilled and motivated workers is necessary to boost the economic prospects of those who do not emigrate, but his policy recommendation rests on a fundamentally different claim: that blocking immigration will lead to economic development in the countries immigrants leave. He offers no evidence to support this claim, because he cannot: there is no country, region, district, or city on earth where coercive policies to restrict departure have been shown to trigger economic growth. Consider Haiti, which Collier offers as the quintessential case study of the down-sides to emigration, since the country “has lost around 85 percent of its educated people.” In fact, the true figure is closer to 75 percent; Collier inappropriately counts university-educated Haitians who left as children and were educated abroad. The bigger problem with this example, however, is his logical leap. It is obviously true that if Haiti is to have a twenty-first-century economy, it will need to convince skilled workers not to leave. But it is wrong to slip from that claim to a different one, for which there is no evidence: that if skilled people born in Haiti were coerced into staying there against their will, because of immigration caps abroad, then the country’s economy would modernize. Eighty percent of Haitians who earn more than $10 per day live in the United States, not Haiti. In other words, emigration is the main way to escape poverty in Haiti. Yet Collier would deny poor Haitians this opportunity on the baseless grounds that forcing them to remain in Haiti will cause the country to prosper. 30 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: No effects Tens of millions of people from low-income countries would permanently move given the opportunity Michael Clemens is a senior fellow at the Center for Global Development in Washington, D.C. and a research fellow at IZA Institute for the Study of Labor in Bonn. His research in peer-reviewed academic journals focuses on the economics of global migration, development, and foreign assistance. He holds a Ph.D. in economics from Harvard University and his research has been awarded the Royal Economic Society Prize. “Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?” Journal of Economic Perspectives—Volume 25, Number 3—Summer 2011—Pages 83–106. http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83 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. Yet the effects of these distortions are little studied in economics. Migration economics has focused elsewhere—on immigration, how the movement of people affects the economies that receive migrants—while the effects of emigration go relatively neglected. Vast numbers of people in low-income countries want to emigrate from those countries but cannot. The Gallup World Poll finds that more than 40 percent of adults in the poorest quartile of countries “would like to move permanently to another country” if they had the opportunity, including 60 percent or more of adults in Guyana and Sierra Leone (Pelham and Torres, 2008; Torres and Pelham, 2008). Emigration is constrained by many forces, including credit constraints and limited information at the origin (Hatton and Williamson, 2006). However, policy barriers in the destination countries surely play a major role in constraining emigration. The size of these constraints is apparent in the annual U.S. Diversity Visa Lottery, which allocates permanent emigration slots mainly to developing countries. In fiscal year 2010, this lottery had 13.6 million applications for 50,000 visas (U.S. Department of State, 2011)—272 applicants per slot. Many other potential destinations, such as Japan, restrict migration more than the United States. 31 IMMIGRATION TOPIC PRO EVIDENCE V1 CONTENTION1.COM AT: Politicians Politicians aren’t looking at the big picture. They only look out for national interests. Sebastian Mallaby is Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations. Sept 28, 2015. “How to Understand the Economic Impact of Migration.” https://www.foreignaffairs.com/articles/2015-09-28/net-benefits If the gains from migration are so vast, why do political leaders tend to resist new arrivals? The answer lies in the distribution of these gains, the lion’s share of which accrues to the migrants. If a cabdriver from Lima moves to New York, for instance, his skills will remain unchanged, but his income will shoot up dramatically. Yet the economic consequences for New York and for its native-born cabdrivers will not be immediately obvious, and the impact of the migrant’s new job on the Peruvian economy will be hard to assess. Seen from the standpoint of global welfare, in other words, migration offers a clear win. But politicians speak for national and sometimes regional interests, not for the global commons. It is perhaps for this reason that European leaders have struggled to respond to a crisis that, properly managed, could greatly increase the global total of wellbeing. 32
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