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Submitted by Shanta on

If this argument is valid, why doesn't it also apply to movements within countries? When someone moves from a village to the city, why don't we observe average productivity going down in both places? As I said in the opening of my post, which several commentators confirmed, there is a large body of evidence from development economics that shows that migration (typically from farm to cities) enhances overall productivity in the economy. If this works for a rural Thai farmer moving to Bangkok, why doesn't it also work for an Ethiopian moving to Milan?