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The effect of mode 4 liberalization on illegal immigration

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  • Bchir, Mohamed Hedi
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    Abstract

    This paper aims to assess the impacts of the temporary movement of workers on the illegal immigration. It uses a discrete time, forward-looking model with heterogeneous agents, in order to describe the decision made by illegal migrants from developing countries. Illegal migrants are supposed to accede only to the informal sector and are price takers, as they have no negotiating power. Taking into account these specifications, the theoretical model is solved analytically and illustrated numerically. It demonstrates that under some conditions, the liberalization of temporary movement of workers could lead to a decrease of illegal migration.

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    File URL: http://www.sciencedirect.com/science/article/B6VB1-4S32DMN-2/2/bec74d44d889393a8b1acb7014546a3f
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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 25 (2008)
    Issue (Month): 5 (September)
    Pages: 1051-1063

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    Handle: RePEc:eee:ecmode:v:25:y:2008:i:5:p:1051-1063

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    Web page: http://www.elsevier.com/locate/inca/30411

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    1. Entorf, Horst, 2000. "Rational migration policy should tolerate non-zero illegal migration flows: Lessons from modelling the market for illegal migration," W.E.P. - Würzburg Economic Papers 23, University of Würzburg, Chair for Monetary Policy and International Economics.
    2. John Whalley, 2003. "Assessing the Benefits to Developing Countries of Liberalization in Services Trade," NBER Working Papers 10181, National Bureau of Economic Research, Inc.
    3. Schiff, Maurice, 2004. "When Migrants Overstay Their Legal Welcome: A Proposed Solution to the Guest-Worker Program," IZA Discussion Papers 1401, Institute for the Study of Labor (IZA).
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