Abstract
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.
Similar content being viewed by others
Notes
Esipova, Neil, and Julie Ray. March 9, 2012. “More Adults Would Move for Temporary Work Than Permanently.” Gallup World. http://www.gallup.com/poll/153182/Adults-Move-Temporary-Work-Permanently.aspx
Phillip Connor, D’Vera Cohn and Ana Gonzalez-Barrera. December 17, 2013. “Changing Patterns of Global Migration and Remittances.” Pew Research Center, http://www.pewsocialtrends.org/files/2013/12/global-migration-final_12-2013.pdf, p.4
Clifton, John. March 21, 2013. “More Than 100 Million Worldwide Dream of a Life in the U.S.” Gallup World. http://www.gallup.com/poll/161435/100-million-worldwide-dream-life.aspx
Statistics in the this paragraph can be found at: http://www.immigrationpolicy.org/sites/default/files/docs/how_us_immig_system_works.pdf
As Borjas himself recognizes, it largely accomplishes the goal of a more skilled population of immigrants by changing the country of origin of the immigrants rather than changing the skill set of people who migrate from a given country.
See Leeson and Gochenour (2015) for a survey of this debate.
References
Becker, G. (1987). A radical proposal to improve immigration policy. Mimeo.
Borjas, G. (1999). Heaven’s Door: Immigration Policy and the American Economy. Princeton: Princeton University Press.
Borjas, G. (2015). Immigration and globalization: a review essay. Journal of Economic Literature
Caplan, B., & Naik, V. (2015). A radical case for open Borders. In B. Powell (Ed.), The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy (pp. 180–209). Oxford: Oxford University Press.
Clark, J. R., Lawson, R., Nowrasteh, A., Powell, B., & Murphy, R. (2015). Does immigration impact institutions? Public Choice, 163(3–4), 321–336.
Clemens, M. (2011). Economics and emigration: trillion-dollar bills on the sidewalk? The Journal of Economic Perspectives, 25, 83–106.
Gwartney, J., Lawson, R., & Hall, J. (2013). Economic freedom of the world annual report. Vancouver, BC, Canada: Fraser Institute.
Lachmann, L. (195t6 [1978]). Capital and its structure. Bell & Sons Ltd.: London.
Leeson, P., & Gochenour, Z. (2015). The economic effects of international labor mobility. In B. Powell (Ed.), The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy (pp. 11–37). Oxford: Oxford University Press.
Nowrasteh, A. (2015). The fiscal impact of immigration. In B. Powell (Ed.), The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy (pp. 38–69). Oxford: Oxford University Press.
Powell, B. (2015). The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy. (Ed.) Oxford: Oxford University Press.
Vedder, R. (2015). Immigration reform: a modest proposal. In B. Powell (Ed.), The Economics of Immigration: Market-Based Approaches, Social Science, and Public Policy (pp. 145–166). Oxford: Oxford University Press.
Acknowledgments
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.
Author information
Authors and Affiliations
Corresponding author
Additional information
2015 presidential address, society for the development of Austrian economics
Rights and permissions
About this article
Cite this article
Powell, B. The economics of immigration: An Austrian contribution. Rev Austrian Econ 29, 343–349 (2016). https://doi.org/10.1007/s11138-015-0336-6
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11138-015-0336-6