DP5885 What Determines Immigrations' Impact? Comparing Two Global Centuries

Author(s): Timothy J. Hatton, Jeffrey G Williamson
Publication Date: October 2006
Keyword(s): capital mobility, history, immigration, labour market impact, policy
JEL(s): F22, J1, O15
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=5885

This paper asks whether history can shed light on the modern debate about immigration's labour market impact in high wage economies. It examines the relationship between migration and capital flows in the age of mass migration before 1914, the so-called first global century. It then assesses the effects of immigration on wages and employment with and without international capital mobility in first global century and today, that is, the second global century. The paper then explores the links between these economic relationships and immigration policy. It concludes with an explanation for the apparent difference in immigration's impact in the two global centuries, and thus on policy.