Abstract
The H&W paper is a survey by two of the leading experts in the field and represents years of work. It is consequently a rewarding paper to read, especially as it belongs to the class of papers that raise more questions than they answer. This comment deals with the key question: What is driving the flow of immigrants from the poor LDCs to the rich DCs?
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With such large differences, small variations are unlikely to have much impact on the flows. Whether an LDC has 10 percent or 12 percent of a certain DC’s standard of Ii ving makes only a marginal difference to the gain the immigrant obtains.
Theoretically the Harris-Todaro model is just an arbitrage condition equilibrating a flow, but in our reverse case it is, rather, a minimum condition starting the flow.
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© 2006 Springer-Verlag · Berlin-Heidelberg
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Paldam, M. (2006). Comment on Timothy J. Hatton and Jeffrey G. Williamson. In: Langhammer, R.J., Foders, F. (eds) Labor Mobility and the World Economy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-31045-7_19
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DOI: https://doi.org/10.1007/978-3-540-31045-7_19
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-31044-0
Online ISBN: 978-3-540-31045-7
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