Economic Aspects of International Migration by Timothy J. Hatton, Jeffery G. Williamson (auth.), Prof.

By Timothy J. Hatton, Jeffery G. Williamson (auth.), Prof. Herbert Giersch (eds.)

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While the mass migrations were taking place, there was another fundamental force at work: economic convergence. The poor labor-abundant Old World countries were catching up with the rich labor-scarce New World countries. While we will have more to say about the magnitude of this remarkable economic convergence between the 1850s and World War I, the remainder of this paper will focus on what ought to be central questions facing economists interested in migration: What role did the mass migrations play in contributing to late 19th-century convergence?

Hatton and Jeffrey G. Williamson namic responses can be ignored. There is certainly a long tradition in American historiography that argues mass immigration drove down the wage, particularly among the unskilled, and that this fact provided fuel to contemporary debates over immigration policy. A simple partial equilibrium analysis of the immigrantabsorbing labor market is presented in Figure 5. Two parameters are central to any assessment of immigration-domestic labor supply and domestic labor demand elasticities.

780). In these three important cases, international factor migration contributed to convergence between the rich New World and the poor Old World. The remaining four countries had just the opposite experience. 168). In two New World countries where capital chased after labor, Australia and Canada, capital flows dominated. 645). Canadian experience was even more Timothy J. Hatton and Jeffrey G. Williamson 44 Table 5. 29 . 60 Source: Hatton, O'Rourke, and Williamson (ongoing). K = total fixed, reproducible capital stock, in current prices.

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