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2. Measuring the Spatial Misallocation of Labor: The Returns to India-Gulf Guest Work in a Natural Experiment
- Author:
- Michael Clemens
- Publication Date:
- 01-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- ‘Guest workers’ earn higher wages overseas on temporary low-skill employment visas. This wage gap can be used to measure gaps in the productivity of workers due to where they are, not who they are. This paper estimates the effects of guest work on Indian applicants to a construction job in the United Arab Emirates, where an economic crisis allocated guest work opportunities as-good-as-randomly among several thousand families. Guest work raised the return to poor families' labor by a factor of four, with little evidence of systematic fraud.
- Topic:
- Migration, Labor Issues, Migrant Workers, and Guest Workers
- Political Geography:
- India and Asia
3. Maximizing the Shared Benefits of Legal Migration Pathways: Lessons from Germany’s Skills Partnerships
- Author:
- Michael Clemens, Helen Dempster, and Kate Gough
- Publication Date:
- 07-2019
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- The world is experiencing significant demographic shifts. By 2100, Europe’s working-age population will have declined, and sub-Saharan Africa’s working-age population will have greatly increased. Many of these new labor market entrants will seek opportunities in Europe, plugging skill gaps and contributing to economies in their countries of destination. Germany is one country piloting and implementing projects that can help alleviate such demographic pressures and maximize the potential mutual benefits of legal labor migration. We discuss these projects, and highlight differences in their potential impact on development in the country of origin. We recommend that European governments build on, adapt, and pilot-test one of Germany’s approaches, also known as the Global Skill Partnership model: training potential migrants in their countries of origin before migration, along with non-migrants. Ideally, governments should pursue such pilot-tests with those countries that exhibit rising future migration pressure to Europe, particularly in sub-Saharan Africa. Neither the conclusion nor the results of this analysis reflect the opinion of the Federal Ministry of Economic Cooperation and Development (BMZ) or Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
- Topic:
- Migration, Labor Issues, Immigration, and Border Control
- Political Geography:
- Africa, Europe, Germany, and Sub-Saharan Africa
4. Promoting New Kinds of Legal Labour Migration Pathways Between Europe and Africa
- Author:
- Michael Clemens, Helen Dempster, and Kate Gough
- Publication Date:
- 10-2019
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development (CGD)
- Abstract:
- As Europe’s working-age population continues to decline, sub-Saharan Africa’s is rapidly increasing. Many of these new labour market entrants will seek opportunities in Europe, plugging skill gaps and contributing to economies in their countries of destination. To make the most of these movements, the new European Commission should create and promote new kinds of legal labour migration pathways with more tangible benefits to countries of origin and destination; pilot and scale Global Skill Partnership projects between Europe and sub-Saharan Africa and within Africa; and be a positive voice for migration within Europe, promoting the benefits from migration and ensuring they are understood.
- Topic:
- Migration, Labor Issues, Legal Theory, Borders, and Labor Market
- Political Geography:
- Africa and Europe
5. The New Economic Case for Migration Restrictions
- Author:
- Michael Clemens and Lant Pritchett
- Publication Date:
- 02-2016
- Content Type:
- Working Paper
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- For decades, migration economics has stressed the effects of migration restrictions on income distribution in the host country. Recently the literature has taken a new direction by estimating the costs of migration restrictions to global economic efficiency. In contrast, a new strand of research posits that migration restrictions could be not only desirably redistributive, but in fact globally efficient. This is the new economic case for migration restrictions. The case rests on the possibility that without tight restrictions on migration, migrants from poor countries could transmit low productivity ("A" or Total Factor Productivity) to rich countries—offsetting efficiency gains from the spatial reallocation of labor from low to high-productivity places. We provide a novel assessment, proposing a simple model of dynamically efficient migration under productivity transmission and calibrating it with new macro and micro data. In this model, the case for efficiency-enhancing migration barriers rests on three parameters: transmission, the degree to which origin-country total factor productivity is embodied in migrants; assimilation, the degree to which migrants’ productivity determinants become like natives’ over time in the host country; and congestion, the degree to which transmission and assimilation change at higher migrant stocks. On current evidence about the magnitudes of these parameters, dynamically efficient policy would not imply open borders but would imply relaxations on current restrictions. That is, the new efficiency case for some migration restrictions is empirically a case against the stringency of current restrictions.
- Topic:
- Economics, Migration, Labor Issues, and Economy
- Political Geography:
- Global Focus
6. Losing Our Minds? New Research Directions on Skilled Migration and Development
- Author:
- Michael Clemens
- Publication Date:
- 09-2015
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- This paper critiques the last decade of research on the effects of high-skill emigration from developing countries, and proposes six new directions for fruitful research. Design/methodology/approach: The study singles out a core assumption underlying much of the recent literature, calling it the Lump of Learning model of human capital and development, and describes five ways that research has come to challenge that assumption. It assesses the usefulness of the Lump of Learning model in the face of accumulating evidence. The axioms of the Lump of Learning model have shaped research priorities in this literature, but many of those axioms do not have a clear empirical basis. Future research proceeding from established facts would set different priorities, and would devote more attention to measuring the effects of migration on skilled-migrant households, rigorously estimating human capital externalities, gathering microdata beyond censuses, and carefully considering optimal policy—among others. The recent literature has pursued a series of extensions to the Lump of Learning model: This study urges instead discarding that model, pointing toward a new paradigm for research on skilled migration and development.
- Topic:
- Migration, Refugee Issues, and Developing World
7. Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development
- Author:
- Michael Clemens and Timothy N. Ogden
- Publication Date:
- 02-2014
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- It is time to fundamentally reframe the research agenda on remittances, payments, and development. We describe many of the research questions that now dominate the literature and why they lead us to uninformative answers. We propose reasons why these questions dominate, the most important of which is that researchers tend to view remittances as states do (as windfall income) rather than as families do (as returns on investment). Migration is, among other things, a strategy for financial management in poor households: location is an asset, migration an investment. This shift of perspective leads to much more fruitful research questions that have been relatively neglected. We suggest 12 such questions.
- Topic:
- Economics, Migration, Political Economy, Poverty, Labor Issues, and Immigration
8. Does Development Reduce Migration?
- Author:
- Michael Clemens
- Publication Date:
- 03-2014
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- The most basic economic theory suggests that rising incomes in developing countries will deter emigration from those countries, an idea that captivates policymakers in international aid and trade diplomacy. A lengthy literature and recent data suggest something quite different: that over the course of a "mobility transition", emigration generally rises with economic development until countries reach upper-middle income, and only thereafter falls. This note quantifies the shape of the mobility transition in every decade since 1960. It then briefly surveys 45 years of research, which has yielded six classes of theory to explain the mobility transition and numerous tests of its existence and characteristics in both macro- and micro-level data. The note concludes by suggesting five questions that require further study.
- Topic:
- Economics, Migration, Social Stratification, Social Movement, and Developing World
- Political Geography:
- United States, Canada, and Mexico
9. Beyond Aid: Migration as a Tool for Disaster Recovery
- Author:
- Michael Clemens and Kaci Farrell
- Publication Date:
- 06-2011
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development (CGD)
- Abstract:
- Natural disasters such as earthquakes, floods, and hurricanes can devastate people's lives and a country's economy, particularly in the developing world. More than 200,000 people perished when a catastrophic earthquake struck Haiti in January 2010, and Americans responded with an outpouring of private and public assistance. Those relief efforts, as they nearly always do, focused primarily on delivering aid. The United States barely used another tool for disaster relief: migration policy. This policy brief explores the various legal channels through which the U.S. government could, after future overseas disasters, leverage the power of migration to help limited numbers of people. We describe what could have been done for Haiti, but the lessons apply to future scenarios.
- Topic:
- Humanitarian Aid, Migration, Natural Disasters, and Foreign Aid
- Political Geography:
- United States
10. Economics and Emigration: Trillion-dollar Bills on the Sidewalk?
- Author:
- Michael Clemens
- Publication Date:
- 08-2011
- Content Type:
- Working Paper
- Institution:
- Center for Global Development (CGD)
- Abstract:
- Large numbers of people born in poor countries would like to leave those countries, but barriers prevent their emigration. Those barriers, according to economists' best estimates to date, cost the world economy much more than all remaining barriers to the international movement of goods and capital combined. Yet economists spend much more time studying the movement of goods and capital, and when they study migration at all, they focus on the effects of immigration on nonmigrants in destination countries. I ask why this is the case and sketch a four-point research agenda on the effects of emigration. Barriers to emigration deserve a research priority that is commensurate with their likely colossal economic effects.
- Topic:
- Economics, Migration, Poverty, and Immigration