Showing posts with label citizenship. Show all posts
Showing posts with label citizenship. Show all posts

Sunday, September 20, 2020

"Citizenship has acquired an enormous economic value"

Branko Milanović
Branko Milanović, in a blogpost titled "Is citizenship just a form of rent?" 

Branko Milanović is a visiting presidential professor at The Graduate Center, CUNY, and a senior scholar at the Stone Center on Socio-economic Inequality.

In a globalised world, composed of countries with vastly unequal mean incomes, citizenship has acquired an enormous economic value, argues Milanović. 

"The existence of the welfare state in a world of enormous income differences between the countries has drawn a wedge between citizens of rich countries that enjoy these benefits and citizens of poor countries that do not. It has created a “citizenship rent” for those who are lucky to be citizens of the rich countries; and “citizenship penalty” for others. Two otherwise  identical citizens of France and Mali will have entirely different sets of income-generating rights which stem from their citizenships alone."

Prof. Milanovic continues: "Our French and Malian citizens can be equally educated, experienced, and hard-working, but their wages will differ by a factor of 5 to 1, or even more, simply because one of them works in a rich and another in a poor country. In fact, around 60% of our lifetime incomes is determined by country of citizenship."

Prof. Milanovic’s paper "Global Inequality of Opportunity: How Much of Our Income Is Determined by Where We Live?" was published in May 2015 in the Review of Economics and Statistics (vol. 97, no. 2. pp. 452-460). The author has provided the above link for those who wish to read this paper.