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Some Essentials Of A Workable Guest‐Worker Program

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  • Slobodan Djajić

Abstract

A guest‐worker program provides an appealing way of addressing labor shortages in an advanced country. It requires, however, that foreign workers are willing to return home when their work permit expires. I examine how immigration policies, enforcement measures, and opportunities available in various markets at home and abroad affect the behavior of program participants. Welfare of a migrant who obeys the rules of the program is compared with that of workers who choose other options in order to define the conditions under which temporary migration is attractive to potential migrants and at the same time consistent with voluntary return.

Suggested Citation

  • Slobodan Djajić, 2013. "Some Essentials Of A Workable Guest‐Worker Program," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 739-766, May.
    • Handle: RePEc:wly:iecrev:v:54:y:2013:i:2:p:739-766
    DOI: iere.12013
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    References listed on IDEAS

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    2. Djajic, Slobodan & Milbourne, Ross, 1988. "A general equilibrium model of guest-worker migration : The source-country perspective," Journal of International Economics, Elsevier, vol. 25(3-4), pages 335-351, November.
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    13. N.J. H. Penny, 1986. "Migrant Labour and the South African Gold Mining Industry: A Study of Remittances," South African Journal of Economics, Economic Society of South Africa, vol. 54(3), pages 186-195, September.
    14. Djajić, Slobodan & Vinogradova, Alexandra, 2013. "Undocumented migrants in debt," Labour Economics, Elsevier, vol. 21(C), pages 15-24.
    15. Christopher Udry & Santosh Anagol, 2006. "The Return to Capital in Ghana," American Economic Review, American Economic Association, vol. 96(2), pages 388-393, May.
    16. repec:ilo:ilowps:411227 is not listed on IDEAS
    17. Tamura, Yuji, 2010. "Migrant smuggling," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 540-548, August.
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    Cited by:

    1. Emmanuelle Auriol & Alice Mesnard, 2016. "Sale of Visas: a Smuggler's Final Song?," Economica, London School of Economics and Political Science, vol. 83(332), pages 646-678, October.
    2. Sarah Elizabeth Roberts, 2020. "The Bureaucratic and Political Work of Immigration Classifications: an Analysis of the Temporary Foreign Workers Program and Access to Settlement Services in Canada," Journal of International Migration and Integration, Springer, vol. 21(3), pages 973-992, September.
    3. Slobodan Djajic, 2014. "Guest-Worker Programs," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(2), pages 16-19, 07.
    4. Djajić, Slobodan & Vinogradova, Alexandra, 2015. "Overshooting the Savings Target: Temporary Migration, Investment in Housing and Development," World Development, Elsevier, vol. 65(C), pages 110-121.
    5. Slobodan Djajić, 2014. "Temporary Migration and the Flow of Savings to the Source Country," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 162-176, February.
    6. Alexandra Vinogradova, 2016. "Illegal immigration, deportation policy, and the optimal timing of return," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 781-816, July.
    7. Slobodan Djajic & Alice Mesnard, 2013. "Guest Workers in the Underground Economy," RF Berlin - CReAM Discussion Paper Series 1324, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    8. repec:ces:ifodic:v:12:y:2014:i:2:p:19116207 is not listed on IDEAS
    9. Slobodan Djajić & Alexandra Vinogradova, 2019. "Immigration Policies and the Choice between Documented and Undocumented Migration," Economica, London School of Economics and Political Science, vol. 86(341), pages 201-228, January.
    10. Alexandra Vinogradova, 2014. "Legal and illegal immigrants: an analysis of optimal saving behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 201-224, January.
    11. Djajic, S. & Mesnard, A., 2013. "Guest Workers in the Underground Economy," Working Papers 13/05, Department of Economics, City University London.
    12. Djajić, Slobodan & Mesnard, Alice, 2015. "Guest workers in the underground economy," Labour Economics, Elsevier, vol. 35(C), pages 53-62.
    13. Slobodan Djajic, 2014. "Guest-Worker Programs," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 16-19, July.
    14. Slobodan Djajić & Alice Mesnard, 2013. "Guest Workers in the Underground Economy," IHEID Working Papers 15-2013, Economics Section, The Graduate Institute of International Studies.

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