Juli 2000

IZA DP No. 170: Immigration Policy in Integrated National Economies

published in: C. Lankowski (ed.): Responses to Globalization in Germany and the United States, AICGS Research Report No. 10, Washington, D. C., 1999, 15-30

Migration is an unavoidable aspect of globalization. While full flexibility is politically unfeasible, the paper argues for regulated openness. Migration in the age of globalization should be judged according to the labor market needs of the receiving countries. This would also serve best the demands of political leaders that seek reelection. Voters are happier with migrants if they are largely selected according to their value to the economy. In the current situation in developed countries it is best to select skilled migrants, and those who can produce non-tradable services. The need to import skilled labor might be limited by virtual migration through the Internet.