The economics of immigration: An Austrian contribution
Any managed migration system will fail to achieve the optimal quantity or mix of immigrants because centrally planning the international labor market suffers from the same epistemic problems that make it impossible to optimally plan any market. In response to the artificial relative price structure, imposed by managed migration systems, the domestic stock of human and physical capital becomes distorted. Managed migration systems also set in motion the dynamics of intervention that lead to further interventions into the economy.
KeywordsImmigration Economic calculation Heterogeneous capital Human capital
JEL ClassificationF22 F55 J61 J68
I thank Adam Martin, Alex Salter, and the students in my Ph.D. Austrian Economics class for helpful comments on an earlier version of this address.
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