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IZA
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International Migration and the Integration of Labor Markets
by
Barry R. Chiswick, Timothy J. Hatton
(August 2002)
published in: M. Bordo, A. Taylor, J. Williamson (eds), Globalization in Historical Perspective, NBER Conference Report, 2003, 65-119
Abstract:
This paper is concerned with the determinants and consequences of intercontinental
migration over the past four centuries. It begins with a review of the history of primarily trans-
Atlantic migration to the New World during the period of Colonial settlement. The contract
and coerced migration from Europe and Africa gave way, from the 18th century, to an era of
free European migration. The period 1850 to 1913 was one of mass migration, primarily from
Europe to North America and Oceania and from parts of Asia (primarily India, China and
Japan) to other parts of Asia, Africa and the New World. World wars, immigration restrictions
and the Great Depression resulted in a period of low international migration (1913 to 1945).
In the post-World War II period international migration again increased sharply, but with
changes in the nature of the flows, and under the constraints of immigration controls. Europe
joined North America and Oceania as a major destination, as did the oil producing Arab
countries bordering the Persian Gulf.
The paper then explores the reasons for this international migration. Important factors include
the relative wages in the origin and destination, the cost of international migration, the wealth
to finance the investment, chain migration (kinship and information networks), as well as
government subsidies to and restrictions on the free flow of people.
The impact of international migration is explored in the context of a two-factor and a threefactor
aggregate production function. Implications are developed for the aggregate (average)
impact, as well as for the impact on the functional and personal distributions of income. The
gainers and losers from international migration are considered.
With insights on impact, a political economy approach is used to analyze the determinants of
immigration controls. The influence on policy of gainers and losers from immigration was
mediated by institutional change and by interest group politics. The long run relationship
between globalization and international migration is explored.
Text: See Discussion Paper No. 559
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