Publication

The costs and benefits of immigration to host countries are hotly debated in academic and policy circles alike. Immigrants may decrease wages of competing native workers and put fiscal strains on host economies. Yet, migration may also keep social security systems of aging societies solvent and aid in overcoming skill shortages. This policy brief argues that immigration is also likely to make the labor force more responsive to regional disparities in economic opportunities, thereby increasing the efficiency of the labor market. This benefit has largely gone unnoticed in current policy debates on immigration.