Efficiency Gains from the Elimination of Global Resstrictions on Labour Mobility: An Analisis Using a Multiregional CGE Model

We compute the world- wide efficiency gains from the elimination of global restrictions on labor mobility using a multiregional CGE model. A distinctive feature of our analysis is the introduction of a segmented labor market, as two types of labor are considered: Skilled and unskilled. According to our results, when labor is a homogeneous factor, the elimination of global restrictions on labor mobility generates world- wide efficiency gains that could be of considerable magnitude. When the labor market is segmented and both skilled and unskilled labor migrate, welfare gains reduce since the benefits and losses of migration are not evenly distributed within each region. When only skilled labor migrates, the world-wide efficient gains are smaller, since this type of labor represents a small fraction of the labor force in developing regions.

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