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Tradable immigration quotas

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  • Fernández-Huertas Moraga, Jesús
  • Rapoport, Hillel

Abstract

International migration is maybe the single most effective way to alleviate global poverty. When a given host country allows more immigrants in, this creates costs and benefits for that particular country as well as a positive externality for individuals and governments who care about world poverty. Host countries quite often restrict immigration due to its important social and political costs, however these costs are never measured and made comparable across countries. In this paper we first show theoretically that tradable immigration quotas (TIQs) can reveal countries' comparative advantages in hosting immigrants and — once coupled with a matching mechanism taking migrants' preferences over destinations and countries' preferences over migrants' types into account — allow for exploiting them efficiently. We then discuss three potential applications: a market for the resettlement of international refugees, a market for the resettlement of migrants displaced by climate change, and the creation of an OECD poverty-reduction visa program adapted from the US green card lottery.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 115 (2014)
Issue (Month): C ()
Pages: 94-108

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Handle: RePEc:eee:pubeco:v:115:y:2014:i:c:p:94-108

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Immigration; Immigration policy; Tradable quotas; Refugee resettlement; Climate change; International public goods;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Should immigration quotas be traded?
    by Economic Logician in Economic Logic on 2011-07-14 14:32:00
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Cited by:
  1. Auriol, A. & Mesnard, A., 2013. "Sale of visas: a smuggler's final song?," Working Papers 13/06, Department of Economics, City University London.
  2. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Documents de travail du Centre d'Economie de la Sorbonne 13046, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute for the Study of Labor (IZA).
  4. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00825816, HAL.

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