Chapter 2 examined why people migrate. But what happens in origin and destination countries when they do? In the United States, a larger voice calls for restricting immigration and certainly eliminating illegal migration. But perhaps a “silent” majority – business owners and the service industry, in particular – have the opposite desire. And what would happen to an economy if it did not have a pool of cheap labor, or, conversely, access to the creative, technological, and entrepreneurial talents of an intellectual elite that is not homegrown? On the other hand, what happens to origin countries when a labor or talent pool leaves? Of course, origin countries may see migration as a blessing if its labor supply can be absorbed only so far in their economies, but a “brain drain” may harm the prospects for an origin country to climb the developmental ladder.

Of course, a country may try to absorb labor and professionals by attracting foreign investment to create industry and jobs; theoretically, in countries with natural resources, investment would help them climb the developmental ladder. Similarly, the globalization process should be creating a more balanced playing field for all countries, where the movement of capital and labor should lead to a “convergence” of wage levels and rental rates of capital, thus, over time shrinking migration (and capital) flows. Obviously it has not. In fact, where wages are higher, people will be like moths to a flame.