1 / 21

Globalization of labor markets

Globalization of labor markets. 5 th World Chambers Congress, Istanbul, July 2007. Overview. The globalization of labor markets (IMF WEO Spring 2007) Migration: who benefits, and why? Migrants! Home country (through remittances) Host country? Policy implications.

fai
Télécharger la présentation

Globalization of labor markets

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Globalization of labor markets 5th World Chambers Congress, Istanbul, July 2007

  2. Overview • The globalization of labor markets (IMF WEO Spring 2007) • Migration: who benefits, and why? • Migrants! • Home country (through remittances) • Host country? • Policy implications ICC CEAG – Istanbul – July 2007

  3. Global labor supply since 1980 Source: IMF WEO Spring 2007

  4. Global labor supply by education level Source: IMF WEO Spring 2007

  5. Labor migration and trade (percent of labor force and GDP, respectively) Source: IMF WEO Spring 2007

  6. Source: IMF WEO Spring 2007

  7. Note: ICT is share in total capital stock Source: IMF WEO Spring 2007

  8. Skilled vs. unskilled employment and compensation Source: IMF WEO Spring 2007

  9. Source: IMF WEO Spring 2007 Annual changes in percentage points

  10. Most recent trend: trade in tasks (Richard Baldwin) • New information and communication technology facilitates (progressively) the splitting up of value added chains and outsourcing of individual tasks • Increasingly: tasks compete internationally, not goods/sectors ICC CEAG – Istanbul – July 2007

  11. Source: Baldwin (2006)

  12. (2.) Migration: economic benefits and costs • The globalization of labor markets (IMF WEO Spring 2007) • Migration: who benefits, and why? • Migrants! • Home country (through remittances) • Host country? • Policy implications ICC CEAG – Istanbul – July 2007

  13. Share of foreign-born population (percent)

  14. Benefits and losses through migration(traditional model) • Migrants: benefit clearly (or else they would not migrate) • For rest of analysis: distinguish between high-skilled and low-skilled migrants • Reasonable assumption: migrants move from poor (labor-rich) to rich (skill-rich) country ICC CEAG – Istanbul – July 2007

  15. Benefits and losses: home country remaining population • Benefits from remittances (all migrants): consumption, investment in real estate or businesses, investment in education (because of the prospect of migration and higher wages) • May lose from brain drain (high-skilled migrants), particularly in case of specialized skills • Real wages for some or all workers may increase • Case in point: in spite of large low-skilled emigration from Mexico, low-skilled workers experienced little wage increase – because proportion • Migration costs may limit migration opportunities for the very low-skilled / poor (counter-example: Moldova) ICC CEAG – Istanbul – July 2007

  16. Benefits and losses: host country incumbent population • Effects not obvious: total output grows, but immigrants appropriate some or all of the output increase • Could lose or gain from fiscal effects (e.g. low-skilled migrants with large families vs. high-skilled, young, single immigrants) • Could gain from access to scarce skills (particularly when other workers are unemployed) • High-skilled immigration could diminish incentive for education of locals ICC CEAG – Istanbul – July 2007

  17. Benefits and losses: thinking in terms of mobile vs. immobile factors of production • Rich countries are becoming knowledge-based economies • High-skilled workers are the backbone of knowledge transmission and application • For this group, maximum diversity is desirable (universities and research institutes typically have no problem hiring foreigners when qualified) • High-skilled workers are increasingly internationally mobile • Productivity/wage of immobile factors depends on attracting mobile factors ICC CEAG – Istanbul – July 2007

  18. (3.) Policy implications • The globalization of labor markets (IMF WEO Spring 2007) • Migration: who benefits, and why? • Migrants! • Home country (through remittances) • Host country? • Policy implications ICC CEAG – Istanbul – July 2007

  19. Policies • Question: How can we make an income gain for the world as a whole through migration a win-win proposition to the countries involved? • Answer: Tax migrants (explicitly or implicitly) • Income requirements for support of family members • Administrative fees to cover cost of processing, language course, etc. • Currently: limited portability of pensions • Limit immigration to fiscally profitable immigrants ICC CEAG – Istanbul – July 2007

  20. Policies: more pragmatic • Policies would relate to the 3 aspects of migration: • People flows • Financial flows • Diaspora flows ICC CEAG – Istanbul – July 2007

  21. Note on humanitarian crises • Relief efforts are not susceptible to cost-benefit calculations! ICC CEAG – Istanbul – July 2007

More Related