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Illegal Immigration and Second-best Import Tariffs

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  • Subhayu Bandyopadhyay

Abstract

A version of the small-union Meade model is presented to analyze the illegal immigration problem in the context of import tariffs. Two possible host nation objectives are considered: (i) to control the level of illegal immigration to a given target; or (ii) to choose an illegal immigration level that maximizes national welfare. Available policy instruments are import tariffs/subsidies, border, and internal enforcement levels. The second-best tariff on imports from the source nation (for illegal immigration) can be of either sign. It depends on the effect of the tariff on the wage rate and the pattern of substitutability in consumption. In scenario (ii), greater enforcement may be justified if it reduces labor inflow and thereby contracts the protected sector. If enforcement is too costly, tariff policy may substitute for it to exploit monopsony power in the labor market and to counter the distortionary effects of labor flows. Copyright � 2006 The Authors; Journal compilation � Blackwell Publishing Ltd. 2006.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 14 (2006)
Issue (Month): 1 (02)
Pages: 93-103

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Handle: RePEc:bla:reviec:v:14:y:2006:i:1:p:93-103

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Cited by:
  1. Bandyopadhyay, Subhayu & Takashima, Ryo, 2005. "Trade Policy and Illegal Immigration," IZA Discussion Papers 1568, Institute for the Study of Labor (IZA).
  2. Subhayu Bandyopadhyay & Dustin Chambers & Jonathan Munemo, 2012. "Foreign aid, illegal immigration, and host country welfare," Working Papers, Federal Reserve Bank of St. Louis 2012-007, Federal Reserve Bank of St. Louis.
  3. Subhayu Bandyopadhyay & Howard J. Wall, 2005. "Immigration and Outsourcing: A General Equilibrium Analysis," Working Papers 05-08 Classification-, Department of Economics, West Virginia University.
  4. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
  5. Subhayu Bandyopadhyay & Sudeshna Bandyopadhyay, 2006. "The role of capital mobility in illegal immigration policy," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(2), pages 173-189.

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