Question

In two-three paragraphs explain how the (i) citizenship premium and (ii) migration and wall affected inequality have contributed to inequality.

Answer 1

When the differences in income among the countries are so huge then the income will depend significantly on where you were born, or where you live. In rich countries the population enjoys the citizenship premium. It causes a global inequality in the opportunity as the income will be depending on the accident of birth.

The developed and rich nations who have accumulated lots of wealth; and it will transmit their wealth along with several other benefits to its next generations of their citizens. The gap between the developed and developing in the world has become so widened that even a century of rapid growth might find it difficult eradicate the citizenship premium.

While the people, an individual cannot do much about the birth place then prefers to migrate to a high-income country, however the national policies plays a significant role in mitigating global inequalities. People in developed nations are unwilling to share, and therefore possibly decline (at least “locally”) their citizenship premium with migrants. Immigration causes a threat to diminish the premiums enjoyed in rich nations. Thus it closes the door to close inequality