Frédéric Docquier, Çağlar Özden and Giovanni Peri have been making a list, checking it twice, and finding that the prevailing economic wisdom--that
a rising tide lifts all boats--makes a lot of sense;
Educated people are job-creating and complement less educated workers in
productive activities. Hence, higher immigration leads to more job
creation and higher demand for people further down the job ladder. Less
educated workers experienced particularly large wage and employment
gains in countries whose immigration systems favour educated immigrants,
like Australia and Canada. In other countries like Luxembourg, Ireland,
the UK, and Switzerland, less educated natives gained between 2% and 5%
in their wages.
The obverse is also true;
Even more interesting are the economic effects of emigration in OECD
countries....which shows the percentage effects of
emigration 1990–2000 on the wages of less educated native workers.... Those effects are quantitatively
almost as large as (and of the opposite sign to) those from immigration.
For example, in Cyprus, Ireland, and New Zealand during the 1990s, less
educated workers suffered a wage decline of 3–6% due to
emigration of their higher-skilled fellow citizens. The flight of highly
skilled workers meant fewer job opportunities and lower demand for less
educated ones – fewer entrepreneurs were left to employ manual workers,
fewer households to demand cleaning, gardening, and personal services,
and fewer engineers needing construction workers.
All else equal; make your country more attractive to high income earners. That is, if you want to help your poorest citizens.
No comments:
Post a Comment