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On the formation of international migration policies when no country has an exclusive policy-setting say

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  • Stark, Oded
  • Casarico, Alessandra
  • Devillanova, Carlo
  • Uebelmesser, Silke

Abstract

This paper identifies the migration policies that emerge when both the sending country and the receiving country wield power to set migration quotas, when controlling migration is costly, and when the decision how much human capital to acquire depends, among other things, on the migration policies. The paper analyzes the endogenous formation of bilateral agreements in the shape of transfers to support migration controls, and in the shape of joint arrangements regarding the migration policy and the cost-sharing of its implementation. The paper shows that in equilibrium both the sending country and the receiving country can participate in setting the migration policy, that bilateral agreements can arise as a welfare-improving mechanism, and that the sending country can gain from migration even when it does not set its preferred policy.

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File URL: http://purl.umn.edu/117431
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Bibliographic Info

Paper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 117431.

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Date of creation: Oct 2011
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Handle: RePEc:ags:ubzefd:117431

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Related research

Keywords: Human capital formation; International migration; Migration policies; Welfare analysis; Institutional and Behavioral Economics; Labor and Human Capital; F22; I30; J24; J61;

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References

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  1. Jesus Fernandez-Huertas Moraga, 2008. "A General Model of Bilateral Migration Agreements," Working Papers 360, Barcelona Graduate School of Economics.
  2. Milo Bianchi, 2012. "Immigration Policy and Self-Selecting Migrants," Working Papers halshs-00670037, HAL.
  3. Oded Stark & C. Simon Fan, 2007. "The Brain Drain, “Educated Unemployment,” Human Capital Formation, and Economic Betterment," CEDI Discussion Paper Series 07-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
  4. Jess Benhabib & Boyan Jovanovic, 2012. "Optimal Migration: A World Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 321-348, 05.
  5. Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
  6. Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
  7. Ortega, Francesc, 2005. "Immigration quotas and skill upgrading," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1841-1863, September.
  8. Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, vol. 23(3-4), pages 315-328, November.
  9. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September.
  10. Razin, Assaf & Sadka, Efraim & Suwankiri, Benjarong, 2011. "Migration and the Welfare State: Political-Economy Policy Formation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016109, December.
  11. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
  12. Woodland, Alan D. & Yoshida, Chisato, 2006. "Risk preference, immigration policy and illegal immigration," Journal of Development Economics, Elsevier, vol. 81(2), pages 500-513, December.
  13. Stark, Oded & Fan, C. Simon, 2006. "International Migration and "Educated Unemployment"," Discussion Papers 7126, University of Bonn, Center for Development Research (ZEF).
  14. Djajic, Slobodan, 1989. "Skills and the Pattern of Migration: The Role of Qualitative and Quantitative Restrictions on International Labor Mobility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(4), pages 795-809, November.
  15. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR & CES & MSH, vol. 20(44), pages 629-703, October.
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Cited by:
  1. Stark, Oded & Zakharenko, Roman, 2011. "Differential migration prospects, skill formation, and welfare," University of Tuebingen Working Papers in Economics and Finance 22, University of Tuebingen, Faculty of Economics and Social Sciences.

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