The Place Premium: Bounding the Price Equivalent of Migration Barriers

  title={The Place Premium: Bounding the Price Equivalent of Migration Barriers},
  author={Michael A. Clemens and Claudio E. Montenegro and Lant Pritchett},
  journal={Review of Economics and Statistics},
Abstract Large international differences in the price of labor can be sustained by differences between workers or by natural and policy barriers to worker mobility. We use migrant selection theory and evidence to place lower bounds on the ad valorem equivalent of labor mobility barriers to the United States, with unique nationally representative microdata on both U.S. immigrant workers and workers in their 42 home countries. The average price equivalent of migration barriers in this setting for… Expand
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  • Philadelphia, PA: University of Pennsylvania
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