The Solow growth model shows us that per capita output depends on per capita capital and aggregate technology.
This means that people can get richer just by moving where the technology is.
The fact that high tech seems to move quickly across borders but low tech does not means that much of the reason for emmigrating has to do with better access to low tech.
So, what should we make of this piece entitled “For Many Immigrants Children, American Dream Lies Abroad”, from the April 16 issue of The New York Times. It’s about how children of immigrants are moving back to the old country. Why?
Their decisions to leave have, in many cases, troubled their immigrant parents. Yet most said they had been pushed by the dismal hiring climate in the United States or pulled by prospects abroad.
“Markets are opening; people are coming up with ideas every day; there’s so much opportunity to mold and create,” said Mr. Kapadia, now a researcher at Gateway House, a new foreign-policy research organization in Mumbai. “People here are running much faster than the people in Washington.”
“These are the fleet-footed; they’re the ones who in a sense will follow opportunity,” said Demetrios G. Papademetriou, president of the Migration Policy Institute, a nonprofit group in Washington that studies population movements.