Casting the naturalization of asylum seekers as an economic problem
AbstractThe naturalization of asylum seekers is modeled as an economic problem. In choosing their level of investment in host-country-specific human capital, asylum seekers take into consideration the probability of their being naturalized. The government of the host country chooses the probability of naturalization that most encourages the acquisition of such human capital. That human capital, in turn, increases the asylum seekers’ productivity and earnings and, consequently, maximizes the government’s tax receipts if the asylum seekers are allowed to stay permanently. Conditions are presented under which the optimal level of investment in the host-country-specific human capital is positive, and rises in the probability of naturalization. The asylum seeker’s rational response to the probability of (legal) long-term residency is incorporated in the government’s optimization process. Thus, both the asylum seekers and the government of their host country are modeled as optimizing economic agents in a setting not of their own choosing.
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Bibliographic InfoPaper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 62160.
Date of creation: May 2010
Date of revision:
The probability of naturalization; Investment in host-country-specific human capital; Economic behavior of asylum seekers; Economic behavior of the government of the host country; Stackelberg game; Financial Economics; Labor and Human Capital; Political Economy; A13; F20; J24; J41; J61;
Other versions of this item:
- Stark, Oded, 2010. "Casting the naturalization of asylum seekers as an economic problem," Economics Letters, Elsevier, vol. 108(3), pages 286-290, September.
- Stark, Oded, 2010. "Casting the naturalization of asylum seekers as an economic problem," MPRA Paper 28902, University Library of Munich, Germany.
- F20 - International Economics - - International Factor Movements and International Business - - - General
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Ortega, Francesc, 2005. "Immigration quotas and skill upgrading," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1841-1863, September.
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