Chapter 16: Migration and economic adjustment: lessons from Indonesia and the US
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This chapter argues that migration has the potential to be the strongest equaliser of the economic circumstances of individuals across different labour markets. I review the conceptual and empirical arguments behind the idea that migration can generate economic adjustment. I discuss the importance of migration both in prosperous times and in times of economic downturn. In the final part of this chapter, I discuss some empirical evidence on the effectiveness of migration during the deepest economic crises since the mid-1990s, namely the East Asian economic crisis in Indonesia in 1998 and the Great Recession in the US in the late 2000s.

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