Thursday, February 20, 2014

Steps backward for Switzerland and immigration

Switzerland narrowly voted in favor of a referendum that would put "strict limits" on "mass immigration" on February 9th. Accordingly, their government now has three years to create and administer tighter immigration rules - potentially including a quota on how many foreign scientists can be employed at the country’s universities and research institutes. We've already heard about brain drain - so why would Switzerland want to limit the economic benefits foreigners can bring to the country?

From a 2011 research paper by Michael Clemens:

"The gains from eliminating migration barriers dwarf—by an order of a magnitude
or two—the gains from eliminating other types of barriers. For the elimination of
trade policy barriers and capital flow barriers, the estimated gains amount to less
than a few percent of world GDP. For labor mobility barriers, the estimated gains are
often in the range of 50–150 percent of world GDP." [Italics added]

If people cannot be persuaded by data suggesting that a removal of labor mobility barriers could lead to a doubling of the world's GDP, I wonder what it will take for the anti-immigrant paradigm to shift. How do we consider the fundamental human ability to move?

Thanks to a friend (and former colleague) Brett Gall for the link.

Read the full report here:
http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.3.83

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