3 Uniting the World’s Workers REBALANCING THE INTERNATIONAL ORDER TOWARD LABOR
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Foreign products surround us.
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Yet, for all the controversies about refugees and (in the United States) illegal immigration, migration of people with ordinary skills proceeds at a trickle.
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Economists believe that global wealth increases when all factors of production—goods, services, capital, labor—are allowed to flow
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What is special about migration
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The Origins of Free Trade
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The Mediterranean trade was central to Athenian, Carthaginian, and Roman development.
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trading routes of the Muslim world and on to Asia via the Silk Road helped maintain the light of civilization through the Middle Ages in the West.
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Many of the great empires were established and later destroyed by nomadic tribes
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The Germans, the Huns, the Mongols, the Turks,
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By this time, most of the planet was occupied by sedentary agricultural societies.
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Trade became a leading question of state.
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the dominant philosophy uniting colonialism and trade was mercantilism.
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sovereigns should try to sell goods abroad while importing as little as possible,
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IL CREDO MERCANTILISTA
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subsidies for exports and taxes on imports.
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they were wary of emigration, which reduced the size of the national labor force
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Mercantilist policies burdened ordinary people but generated savings for the state that rulers could use to achieve military supremacy
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Bentham, Smith, and David Hume shifted the focus of economic analysis away from the interest of sovereigns in accumulating wealth and toward the desire of ordinary people to enjoy prosperity.
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maximizing the total welfare
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they embraced free international trade
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Before Migration Mattered
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the logic of free migration and free trade is the same,
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both Smith and David Ricardo argued for free mobility
Note:ALCUNI SI PRONUNCIARONO DI PASSAGGIO
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One reason for the emphasis of trade over migration was that in the eighteenth and nineteenth centuries, the gains from trade were far more important than the gains from migration.
Note:RAGIONI DELLO SBILANCIAMENTI
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Inequality across countries increased from about 7% in 1820 to about 70% in 1980.
Note:ESPLOSIONE DISEG INTERNAZIONALI...DA QUI LE SPINTE MIGRATORIE
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On the other hand, average inequality within countries has changed gradually over this period. It increased from about 35% in 1820 to about 38% at its peak just before World War I and then declined to a low of 27% in the 1970s. Since then it has fallen a bit more, to 24%.
Note:DISEG INTRA.IL POVERO NAZIONALE ERA IL PIÙ DEBOLE...CONYRO I MONOPOLI
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This puts into quantitative perspective the very different world we confront today,
Note:OGGI PIÙ ENFASI SULL IMMIGRAZIONE CHE SUI MERCATI
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in modern developed economies, a family of average income enjoys a standard of living similar to that of the very wealthiest families in poor countries.
Note:OGGI
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ours is one in which migration can be a primary route to well-being and prosperity for most people in the world.
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In such a world, it was natural for the Radicals to focus on the freeing of markets for goods and capital from aristocratic privilege, such as the ending of the British Corn Laws,
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Major intellectual debate about migration began only in the late nineteenth and early twentieth centuries.
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Karl Marx, for example, worried that strategic use of Irish migration by British capitalists divided the international working class and undermined socialism.
Note:ATTITUDINI DIVERSE NEI CFR DELL IMMIGRAZ
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In the early twentieth century, a decisive shift in attitudes toward migration took place. With the growing affordability of travel
Note:TRANSATLANTICI
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the rise of ethno-nationalistic sentiments,
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those who were thought to pollute their cultural heritage
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Globalization
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After the war, Western leaders tried to build an international system
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there was a renewed commitment to open trade and international and regional governance institutions.
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while significant intellectual and political resources were used for the building of trade and investment institutions, migration received little consideration.
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international trade, monetary and macroeconomic stabilization, and development finance.
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WTO,
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Eurozone monetary union
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growing inequalities between rich and poor countries, together with dramatic advances in transportation and information technology,
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the Rio Grande,
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the two sides of the Mediterranean.
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seasonal agricultural labor.
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winking at illegal immigration.
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In Germany, for example, the government allowed Turkish workers to settle in the country but did not grant them citizenship;
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movement from lower-wage Eastern European countries like Poland to higher-wage Western countries, including France and the UK,
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Additional tensions were created in 2015 and 2016 when Europe grudgingly accepted a massive influx of refugees from war-torn Syria
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Guest worker systems in other parts of the world, including the states of the Persian Gulf, have been much more successful,
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Capital, goods, and highly educated labor flows rapidly across borders, generating significant wealth, while less educated workers tend to stay at home.
Note:UN ORDINE SBILANCIATO
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“We must not confuse globalization with ‘internationalism’ … One thing is the free movement of peoples, the other of money.
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The Migration Imperative
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gain from further opening international trade in goods is minimal.
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0.3–4.1%.
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At the same time, the benefits of liberalizing migration have dramatically expanded.
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reductions in transportation costs
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A typical Mexican migrant moving to the United States increases her annual earnings from roughly $4,000 to roughly $14,000, and Mexico is a quite wealthy country by global standards.
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the case of Haiti and France,
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the club of wealthy countries, were to accept enough migrants to double their population,
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Suppose too that each migrant on average created income gains of $11,000.
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increase on average of roughly $2,200 for every person on the planet.
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roughly a 20% increase in global income.
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gains to those who stay in poor countries would be equally dramatic, as most migrants remit a large fraction
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Why Not Just Expand Existing Migration?
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opening borders
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While the huge surge of migration would reduce the wages of workers in wealthy countries, global well-being would increase enormously.
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The borders of the United States were open for more than half of its history, and the effects were as theory predicts.
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The social problems brought on by migration were often severe—including a considerable amount of civil strife—but manageable,
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“Protection and Real Wages,” Wolfgang Stolper and Paul Samuelson
Note:IL LAVORO CHE METYE IL DITO NELLA PIAGA
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While trade between a pair of countries always increases the aggregate wealth of both countries, it can have important redistributive effects.
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trade and migration should both benefit capitalists in wealthy countries and laborers in poor countries at the expense of laborers in wealthy countries and capitalists in poor countries.
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immigration reduces the wages of native workers whose backgrounds are similar to those of migrants.
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small and mixed effects
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large benefits migration brings to the migrants themselves and their employers.
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Most low-skilled non-Europeans in Europe either hail from distant former colonies or are refugees taken in for primarily humanitarian rather than economic reasons.
Note:LA MIGRAZIONE UE È POVERA RISPETTO A QUELLA USA...TERA DI UNIVERSITÀ
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European countries have a more generous set of social benefits,
Note:INOLTRE
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low-skilled migrants are a significant drain on public finances in Europe in a way that they are not in the United States.
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Many Europeans are not just abstractly aware of the possibility that migrants strain social services, but also see with their own eyes
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both the impression and to some extent the reality European workers’ experience is of migrants acting as an added burden on public services
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Often it is in the rural and economically depressed regions where few migrants reside that opposition to migration is strongest.
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enormous advantages to the migrants themselves and their families back home, to employers and owners of capital, and to the high-skilled workers who they complement
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workers in wealthy countries, who are already left behind by the forces of trade, automation, and the rising power of concentrated finance.
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natural human instincts toward tribalism,
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the elites who controlled government and supported migration managed to evade political opposition by refraining from enforcement of immigration laws,
Note:LA TATTICA DELLE ÉLITE
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Auctioning Visas?
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migration to OECD countries is controlled by government bureaucrats or private employers,
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auctions offer a simple framework for replacing such systems,
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Nobel Laureate Gary Becker
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auction off the rights to enter the country to the highest bidder.
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a universal social dividend,
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it ensures that a large share of the gains from migration accrue to ordinary people rather than businesses.
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it would soften political opposition to migration.
Note:INOLTRE
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reduce the role of government bureaucrats
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A stream of recent economic research has shown that migration systems that rely most heavily on bureaucratic judgments of migrants’ merits
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Systems that put employers in charge seem to work better
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Suppose too that migrants on average bid $6,000 per year for a visa.
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Median household income for a family of four in the United States is about $50,000. Such a family would earn roughly $8,000 under such a system
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Clearly, money is not the only thing that matters in migration. Cultural fit to local communities,
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Democratizing Visas
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under the H1-B program employers “sponsor” migrant workers.
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Visas Between Individuals Program (VIP),
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any ordinary person could sponsor a migrant worker,
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sponsors are no longer necessarily employers or family.
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Anthony is a recently laid-off construction worker who lives in Akron, Ohio.
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Anthony learns of a new program offered by the State Department that allows him to sponsor a migrant worker
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Anthony describes the sort of worker he is willing to sponsor.
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Anthony also wants to start a handyman business
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The website puts Anthony into contact with a Nepalese man named Bishal.
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Anthony interviews Bishal over the web,
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Bishal will work for Anthony for one year in the United States for $12,000
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Bishal will reside in Anthony’s spare room.
Note:POI
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Bishal obtains the construction job. The construction company realizes that Bishal has some significant skills that he obtained in the construction industry in the UAE, and ultimately pays him $20,000 for the remaining eleven months. Anthony collects the $8,000 balance.
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What if Bishal cannot find work? Or he becomes ill and needs to be hospitalized? Or what if he commits crimes, or simply disappears?
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It is necessary to make Anthony responsible
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sponsors under family reunification programs must provide financial support for migrants who cannot support themselves.
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If Bishal is unable to find work, Anthony must support him
Note:DOVERI
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If Bishal commits a crime, he will be deported after serving his sentence; Anthony will be required to pay a fine.
Note:DOVERI
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If Bishal disappears, Anthony will also be fined.
Note:DOVERI
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It may also be possible, through mutual agreement, for Anthony to place Bishal with another sponsor
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migrant workers must be permitted to work for below the minimum wage.
Note:AGGIUSTAMENTO AFFINCHÈ IL SISTEMA FUNZIONI
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Second, immigration enforcement would need to be strengthened.
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one-time amnesty
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Perhaps to some readers it is uncomfortably similar to indentured servitude,
Note:PRIMA OBIEZIONE
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Or perhaps it just seems exploitative.
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Consider the H1-B visa program,
Note:IN REALTÀ LA PROPOSTA È N CONTINUITÀ
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foreign workers are protected by the same health, safety, labor, and employment laws that Americans benefit from,
Note:RISCHIO SFRUTTAMENTO
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Under the J-1 visa program, Americans can sponsor people, typically young women, who work as au pairs for a year
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Americans serve as employers and sponsors, relying on intermediary institutions—private companies—which help match
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easy-to-use websites
Note:STRUMENTO ESSENZIALE X L INTERMEDIAZINE
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Becker’s auction is run by the government, not by individuals or communities. It will attract migrants who are willing to pay the most regardless of whether certain types of migrants may cause social or cultural harms
Note:SUPERATE LE DEBOLEZZE DI BECKER
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VIP would involve personal contact between natives and migrants, and responsibility on the part of natives
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INSTITUTIONAL SUPPORTS
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Anthony may be too busy and lack the personal or managerial skills or the knowledge of the local economy needed to navigate the VIP system.
Note:PROBLEMA 1…COMPETENZE
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Anthony might also mistreat or exploit Bishal.
Note:ALTRO PROBLEMA...SFRITTAMENTO
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Anthony might illegally withhold wages from Bishal,
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Dozens of institutions have emerged to help individuals navigate these obstacles.
Note:IL PROB 1 È UBIQUO SUL MERCATO
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Workers are most vulnerable to exploitation when their employment options are limited or they operate as illegal immigrants,
Note:PROB 2…PIÙ SERIO...MA
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When potential employers are forced to compete, workers tend to prosper.
Note:LA COMPETIZIONE CHE CREA VIP
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Could VIP Work?
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The migration systems in the UAE, Qatar, Kuwait, Bahrain, Oman, and Saudi Arabia
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Bahrain and Oman host roughly one migrant for every native.
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one migrant for every two citizens.
Note:ARABIA
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Singapore hosts two migrants for every three natives.
Note:ALTRO ES
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one foreign-born resident for every two natives.
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Toronto,
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none of these countries (with the possible exception of Australia) has experienced as large a popular backlash against migration
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All of these countries have migration systems designed for the benefits of migration to be broadly shared among natives rather than exclusively accruing to a small group of geographically concentrated capitalists,
Note:POSSIBILI MOTIVI
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In the GCC, migrant workers enjoy few civil rights,
Note:ESEMPIO DEL GOLFO
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live in segregation from natives.
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most natives have benefited from publicly owned wealth distributed in a reasonably egalitarian manner,
Note:SEMPRE GOLFO
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natives can sponsor migrants
Note:SEMPRE NEL VGOLFO
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neglect of the rights of their migrant labor force.
Note:DIFETTO DEL GOLFO
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For all these reasons, the GCC countries are not a model for OECD countries.
Note:QUINDI
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A political backlash against massive migration is not inevitable.
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An Internationalism of People
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Imagine, then, that 100 million people sponsor migrant workers.
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the number of migrant workers would increase dramatically, from 24 million to 100 million,
Note:AUMENTO CLAMOROSO CON VIP
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Our aim is to involve working-class people who would be attracted by the financial benefits of sponsorship.
Note:L OBIETTIVO
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in our proposal, many of the people who might be hurt by wage suppression will also gain by participating as sponsors in the program.
Note:COMPENSAZIONE
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Factories that have moved abroad could return, offering new jobs for natives, if abundant migrant labor were available,
Note:ESEMPIO DI EFFETTO VIRTUOSO
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of large-scale migration as we envision it would be similar to those of women’s entry into the labor force over the mid-twentieth century,
Note:EFFETTI ANALOGHI
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because most men had close relationships with women, as fathers, husbands, brothers, and sons, they benefited from greater opportunities for women more than they were harmed at work and thus were reconciled to the additional competition.
Note:RIPRODURRE LA CAMPENSAZIONE DEL PRECEDENTE FENOMENO
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Under the H1-B program, as a practical matter, only large and sophisticated employers—the Googles—can sponsor migrant workers.
Note:OGGI SONO IN POCHI A BENEFICIARE
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The illegal economy is currently dominated by low-skilled workers—strawberry pickers, nannies, gardeners, slaughterhouse workers. VIP would put this work on a legal footing,
Note:LA GRANDE LEGALIZZAZIONE...NON SOLO PROGRAMMATORI
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Probably the most important concern is that VIP would increase inequality in host countries. Host country middle and working classes would benefit, while a new class of very poor (by American standards) migrant workers will form a new subordinate class,
Note:L'OBIEZIONE DELLA CLASSE SUBALTERNA
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First and most important, it is crucial to recognize that such migration would not create inequality (in fact it would reduce it). It would merely make more visible the inequality
Note:PRIMA RISPOSTA
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while inequality within the United States might rise (reflecting the lower wealth levels of the foreign workers), both inequality among US natives and global inequality will decline.
Note:SECONDA E OVVIA RISPOSTA
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we need to acknowledge that we in the United States already have a subordinate class of low-wage workers—they are illegal aliens.
Note:TERZA RISPOSTA
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The VIP program, if adopted in multiple countries, would create a vast and fluid international market in migrant labor.
Note:ESITO FINALE
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This is not to deny that there is something disquieting about the subordinate position in which VIP would naturally place migrant workers.
Note:CHIARO CHE LE PREOCCUPAZIONI RESTANO
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This is a moral gain relative to the hypocrisy of our current system
TUTTAVIA