Bernie Sanders, Automation, and the Fate of the US

[Baobab]

86. Long before that jobs in developed countries will be liberalised

Under the economic circumstances some of our leaders think workers should make around what the global average in their fields for people with their level of education.

Bill Clinin's WTO wants "Objective and verifiable criteria" remember?

Read "LABOR MOBILITY" by Sherry Stephenson and Gary Hufbauer


"Hamilton and Whalley (1984) use a partial equilibrium (PE) model and 1977 data to estimate the benefits from the complete
elimination of all immigration restrictions, for skilled and unskilled labor alike. The potential gains are enormous, ranging from 60
to almost 205 percent of world gross domestic product (GDP). Millions of workers would move from low-productivity to high-
productivity jobs in countries with high salaries, until wages in labor-sending and labor-receiving countries equalized. Iregui (1999)
revisits the question using a computable general equilibrium (CGE) model and more precise measures of elasticities and population
characteristics. Here again, the gains are large, ranging from 15 to 67 percent of world GDP. Moses and Letnes (2004), using more
precise values for productivities, confirm large gains, ranging from 4.3 to about 112 percent of world GDP in 1977. According to
these authors, the ‘’most reasonable’’ gain would be 7.5 percent of world GDP.

The large differences between these estimates, both within and between studies, can be explained by the differences in
modeling frameworks (partial versus general equilibrium) and assumed parameters. Some estimates assume that migrants can
achieve the average productivity of workers in the destination country; others assume that additional education and training will be
needed"