November 03, 2023

Migration, among the states and across the border, is a major topic at the forefront of current economic and political discussions. Whether domestically between states or internationally between countries, migration can be analyzed as a way for migrants to arbitrage differences in income and or social services or both. The implications of migration are a disturbance to the equilibrium of both the home state or country as well as the adopted state or country. Those disturbances have both economic and political consequences that we argue can be managed to improve outcomes for all parties. The current approach to immigration policy leaves much to be desired. What type of citizen does the US want to attract? How is success measured and what policies can achieve those objectives? A policy with no clear objective leaves the probability of success to chance – and the stakes are too high to depend on the flip of a coin. Using inter-state migration, we build a framework for the case for all migration, both domestic and international, and are able to frame the problem and potential solutions more clearly.

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