Economic Models
Remittances & Capital
Migrants in Latin American Cities
Return Migration & Reintegration
Mixed Bag
100

According to economist Michael Clemens, the estimated global efficiency gain from completely removing all international labor mobility barriers.

between 50% to 150% of world GDP

100

In the 2025 U.S. Senate budget bill, a 1% remittance tax was proposed on all US citizens. The previous House proposal aimed to tax remittances at 3.5% for this group.

non-US citizens

100

On average, urban migrants in Latin American cities earn higher wages than native residents primarily because migrants possess higher average levels of this.

Education Attainment 

(Busso et al.)

100

This specific expanding economic sector in Guatemala offers the most promising strategy for integrating returning migrants by utilizing their English fluency

Sustainable Tourism

(Anita)

100

What metaphor does Michael Clemens use to describe the unrealized economic gains from reducing emigration barriers?

"Trillion-dollar bills on the sidewalk"

200

According to Michael Clemens, policy barriers on this specific factor of production create far greater global economic losses than barriers on international trade or capital.

Labor

200

According to empirical research cited by the Center for Global Development, for every 1% increase in the transaction cost of sending money abroad, the total remittances drop by this percentage

1.6%

200

Because newly arrived urban migrants face entry barriers in the formal labor market, a disproportionately high share of them work in this economic sector.

Informal Sector

(Busso et al.)

200

Launched in Guatemala to assist arriving deportees, this government initiative provides identification documents, mental health support, and job connections that utilize returnees' language abilities and work experience

Plan Retorno al Hogar (Return Home Plan)

200

In Busso et al.'s analysis urban migrants in Latin America and the Caribbean generally perform well in destination labor markets. However this immigrant group experienced worse outcomes.

“Female migrants" or "those displaced by violence/extreme weather events"

300

According to the Roy Model, this type of selection occurs when low-skilled workers have a stronger relative incentive to migrate than high-skilled workers.

Negative Selection

300

In absolute terms, this country stands to lose the largest amount from a 1% U.S. remittance tax. (DAILY DOUBLE - what amount)

Mexico, at $1.5B per year

300

The process of migrants becoming fully engaged in a destination city's economy, including participation in the labor market and alignment with local economic practices.

Economic Integration

300

In making the case for expanding Guatemala's tourism industry, Anita Isaacs notes that while tourism makes up only 5% of Guatemala's GDP, it accounts for nearly 40% of GDP in this neighboring Central American nation.

Belize

300

Borjas notes that some economists believe the economic gains from easing trade restrictions pale in comparison to those achievable by removing all existing restrictions on this.

"International immigration"

(Borjas)

400

The economic term for the net national gain host countries receive from immigration (DAILY DOUBLE)

Immigration Surplus 

(In the US it is roughly .24% of GDP ~$35B)

400

This term describes how migrants gradually send smaller or less frequent transfers as their residence in the host nation becomes permanent and obligation shifts to host nation born children.

remittance decay

400

A government initiative that grants legal residency status to undocumented migrants, enabling them to work legally, access public services, and fully integrate into the host society.

Regularization Program

400

To encourage foreign-born residents to leave voluntarily without formal expulsion orders, U.S. immigration policy has promoted this practice

Self-deportation
400

This term is defined by Borjas as the rate of convergence in economic outcomes between immigrants and natives in the post-migration period.

“Economic Assimilation”

(Borjas)

500

Using Puerto Rico to test mobility without legal barriers, Borjas calculates that social and cultural moving costs equal this multiple of a marginal worker's annual salary.

10 times

500

These organized migrant groups in destination countries pool community funds to finance local infrastructure, schools, and health clinics in their home villages.

Hometown Associations (HTA)s

500

To improve job prospects for skilled international migrants, host governments establish policy programs to certify and accredit these foreign qualifications.

professional credentials

500

Positive Selection occurs when immigrants have above- average earnings in both the source and the host country. Following Return Migration, this group remains.

"The best of the best"

(Borjas)