People Flows in Globalization

Abstract

The policy debate over globalization in the past decade has largely bypassed the international mobility of labor. Restrict trade and cries of protection- ism resound. Suggest linking labor standards to trade and its protection- ism in disguise. Limit capital flows and the International Monetary Fund is on your back. But restrict people flows? Thats just an accepted exercise of national sover- eignty! During the last few decades, when most countries reduced barriers to trade in goods and services and liberalized financial capital markets, most also sought to limit immigration. In this essay, I examine what we know about the causes and consequences of immigration. I argue that people flows are fundamental to creat- ing a global economy and that the interplay among immigration, capital and trade is essential to understanding the way globalization affects economies. I consider ways to reduce barriers to immigration that could improve the well-being of workers around the world.