Efficiency Gains from the Elimination of Global Restrictions on Labour Mobility

An Analysis Using a Multiregional CGE Model
  • Ana María Iregui
Part of the Studies in Development Economics and Policy book series (SDEP)


The classic economic argument in favour of labour migration is that people move in search of higher wages, thus increasing their own productivity.1 However, as indicated by Layard et al. (1992), the decision to migrate also depends on other economic, social and political considerations. Among the economic aspects, migrants may take into account comparative wage levels (actual and expected); comparative unemployment rates and unemployment benefits; the availability of housing; and the cost of migration, which includes travel expenses, information costs, and the psychological cost of leaving friends and family. Weyerbrock (1995) also indicates that political instability and civil war may cause larger emigration flows than economic or demographic pressures.


Skilled Labour Labour Mobility Welfare Gain Capital Mobility Unskilled Labour 
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© United Nations University — World Institute for Development Economics Research 2005

Authors and Affiliations

  • Ana María Iregui

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