Politicians, economists, and commentators debate open borders

Should all national borders be lifted? That’s the question posed by IZA World of Labor Editor-in-Chief Klaus F. Zimmermann in a recent article for the Huffington Post, arguing that such a move would have a positive effect on both productivity and the alleviation of poverty.

In the article, Zimmermann writes: “Just imagine what a huge economic potential this could unleash on a global scale. Economists estimate that world GDP could be increased substantially—possibly even doubled—this way. The effect would be much greater than any gains from the free movement of goods and capital. Poverty could be combated on a truly global level for the first time. That would be a bold program for social equity.”

Meanwhile, the left-wing US senator Bernie Sanders recently came out against open borders in a Vox interview and in comments he made at the US Hispanic Chamber of Commerce. Sanders, who is running for the Democratic Party’s presidential nomination, argued that the idea of open borders was a “right-wing proposal” that “would make everybody in America poorer”, particularly young African-American and Hispanic people.

Responding to Sanders’ comments in an article for The Week, Ryan Cooper writes that notwithstanding the positive effects migration has on productivity, an open-border policy would be so unpopular with the public as to be unworkable. Cooper argues that nationalism is a cornerstone of the modern nation state, and that: “As much as it devils libertarians, as yet no other human institution has proven itself capable of operating a modern economy. The biggest experiment in post-national economics thus far, the eurozone, has been a cataclysmic disaster.”

In contrast, in a piece for the Guardian in favour of open borders, Cory Massimino holds up the European example as a success story: “The people of Germany, Austria, Switzerland, the Netherlands and others weren’t lowering their standard of living when they adopted the Schengen agreement. Rather, they realized the free movement of people spurs economic growth.”

Elsewhere, writing for Bloomberg View, Noah Smith of Stony Brook University argues in favour of more immigration to the US in order to boost growth, but stops short of advocating scrapping border controls: “A huge influx of mostly poor immigrants would overwhelm the US’s social services … The education and health-care systems would be in chaos. The transportation system would be overwhelmed. A lack of housing would mean that hundreds of millions would be living in shantytowns for years. Wages for low-skilled Americans would probably take a large hit in the short run, exacerbating inequality. So flinging open the gates is too extreme.”

Several IZA World of Labor articles look at the evidence for the economic impacts of migration. John Kennan has argued in favour of relaxing immigration restrictions, writing that: “Allowing workers to move freely across countries could yield large gains, comparable to a doubling of labor income in developing countries. Although the immigrant flows would be large, the wage effects would be small since increases in labor supply would induce investment.”

Amelie Constant has also written for us about the effect migration has on native workers’ jobs. She argues that: “Whether high- or low-skilled, migrants rarely substitute directly for native workers. Instead, migrants often complement native workers or accept jobs that natives don’t want or can’t do. They create new jobs by increasing production, engaging in self-employment, and easing upward job mobility for native workers. The presence of immigrants increases demand and can spur new businesses to open, creating more jobs for immigrant and native populations.”

While it seems relatively clear that migration brings some economic benefits, its wider impact looks likely to remain controversial among policymakers and the public.

Related articles:
Freedom of movement for workers by John Kennan
Do migrants take the jobs of workers? by Amelie F. Constant
Do immigrant workers depress the wages of native workers? by Giovanni Peri
Circular migration by Klaus F. Zimmermann

Find more IZA World of Labor articles on migration here