Labor mobility has strongly increased in the last twenty years. This phenomenon is likely to persist both because wage differentials between nations are still high and because many developed countries are characterized by population decline and ageing. Migrations produce a net efficiency gain and they decrease inequalities across nations. On the other hand, they can also have undesirable effects: a reduction of unskilled workers’ wages and a higher fiscal burden in destination countries. However, the empirical evidence produced in recent years has shown that these effects are moderate. The brain drain contributes to technical progress in developed countries, but it may have positive effects on countries of origin as well.
Keywords: Migrations, Wages, Economic growth, Demographics, Inequality, Brain drain