(cont)
Dani Rodrik, a trade economist at Harvard University, has independently reached similar conclusions. Gaps in the prices of traded goods have become much smaller after many years of liberalisation. Not so gaps in the wages of similarly qualified individuals in different parts of the world. So the gains from liberalising immigration restrictions are vastly greater than those from further freeing the movement of goods or capital.
Both Mr Winters and Mr Rodrik agree that the biggest gains are from freeing the movement of unskilled rather than skilled labour, for there the wage gaps among countries are greatest. In addition, the loss of skilled people may do greater damage to the developing countries that have trained them. So both economists independently reach another conclusion: to minimise harm to sending countries, migration should be temporary.
More migration will not be popular. But neither, says Mr Rodrik, is liberalising trade. And indeed, the plight of the miner in Wales or the farmer in Japan whose way of life is destroyed by cheaper imports is not so different from that of the old lady in downtown Los Angeles whose neighbourhood has become Hispanic. All, in different ways, are victims of the march of globalisation. The best remedy is to redistribute some of globalisation's gains to its victims.
(end)
Dani Rodrik, a trade economist at Harvard University, has independently reached similar conclusions. Gaps in the prices of traded goods have become much smaller after many years of liberalisation. Not so gaps in the wages of similarly qualified individuals in different parts of the world. So the gains from liberalising immigration restrictions are vastly greater than those from further freeing the movement of goods or capital.
Both Mr Winters and Mr Rodrik agree that the biggest gains are from freeing the movement of unskilled rather than skilled labour, for there the wage gaps among countries are greatest. In addition, the loss of skilled people may do greater damage to the developing countries that have trained them. So both economists independently reach another conclusion: to minimise harm to sending countries, migration should be temporary.
More migration will not be popular. But neither, says Mr Rodrik, is liberalising trade. And indeed, the plight of the miner in Wales or the farmer in Japan whose way of life is destroyed by cheaper imports is not so different from that of the old lady in downtown Los Angeles whose neighbourhood has become Hispanic. All, in different ways, are victims of the march of globalisation. The best remedy is to redistribute some of globalisation's gains to its victims.
(end)