Agricultural Economics, Department of

 

Cornhusker Economics

Date of this Version

9-6-2017

Document Type

Newsletter Issue

Citation

Cornhusker Economics, September 6, 2017

Agricultural Economics, University of Nebraska-Lincoln

Abstract

Labor is the world’s most valuable commodity—yet thanks to strict immigration regulation, most of it goes to waste. (Caplan and Naik, 2015) World economic output (currently about $75 trillion) could double if people were allowed to move freely in response to economic opportunities in other countries (Caplan and Naik, 2015). Workers in developing countries have very low productivity because they lack the capital and technology available in high-income countries. In addition, they live in countries in which the rule of law is often absent. Moving to high-income countries would increase their productivity substantially leading to much greater world economic output. In addition to increasing global income, open borders would reduce poverty in low-income countries, lower global inequality and benefit the migrants by allowing them to escape poverty, war, or oppressive governments.

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