In the modern era, no state has ever unconditionally opened its borders to labor. Some have embraced free trade by removing obstacles such as tariffs, and some have opened their borders to workers from neighboring countries. But as far as I can tell, none have opened their labor markets to all comers.
As an Austrian, I have benefitted from the European Union’s freedom of movement, working in Sweden, Britain (which back then was still a member), and Germany. The EU shows that opening borders that way can work without serious detrimental effect.
Yet no country has opened its borders to all others, making it possible for anyone to work there, without any form of immigration status or authorization. For developed countries, the worry that native unskilled labor would suffer from an influx from less fortunate countries seems justified. But why has no developing country tried this? The concept of comparative advantage suggests that just as removing barriers to trade is beneficial, removing barriers to trade may have benefits too. Entrepreneurs disaffected by the conditions in their own countries may flock to any state with such a policy, especially if it is well publicized. The resulting economic activity will ultimately benefit the native population as well. It’s surprising that this hasn’t been tried, and that no-one even advocates for it.
Nehaveigur 