Professor Matt Goodwin, in his letter (January 31), is once again casting immigration as the problem. Actually it has acted as a second-best solution to the shortfalls in our own labour market rigidities, in particular our inability to train our domestic population.
As Gideon Rachman (Opinion, January 23) implies, I shudder at what our health and social care would be like without the legion of wonderful migrants we are fortunate enough to attract.
There are other sectors for which that is equally true. Goodwin is quite wrong to cast this as a matter of being pro- or anti-migration, as in any area of economics shortages will lead to price and/or quantity reallocations. And then we economists have to decide whether we can do better with different policies. The trick there is for society to decide what is better.
Oh, and by the way, that option to migrate also raises the size and quality of the pool of skilled labour in the country of origin as there is a greater incentive to foster tradeable skills and not all will eventually migrate. Trade can benefit all.
Jagjit S Chadha
Director, National Institute of Economic and Social Research, London SW1, UK
