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Temporary Migration Policies and Welfare of the Host and Source Countries: A Game-Theoretic Approach

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Author Info
Slobodan Djajic ()
Michael S. Michael ()

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Abstract

This paper examines the interaction between migration policies of the host and source countries in the context of a model of guest-worker migration. For the host, the objective is to provide low-cost labor for its employers while avoiding illegal immigration. It optimizes over these objectives by setting the time limit of a guest-worker permit. The source country seeks remittance flows and return migration by offering fiscal benefits to returnees. Within this framework, we solve for the Nash equilibrium values of the migration policy instruments and compare them with the ones that emerge in a cooperative setting.

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File URL: http://www.cesifo.de/DocCIDL/cesifo1_wp2811.pdf
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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2811.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2811

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Related research
Keywords: temporary migration; remittances; migration policy;

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

References listed on IDEAS
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.:

  1. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March. [Downloadable!] (restricted)
  2. Adams, Richard H, Jr, 1991. "The Economic Uses and Impact of International Remittances in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 39(4), pages 695-722, July.
  3. Calvo, Guillermo & Wellisz, Stanislaw, 1983. "International factor mobility and national advantage," Journal of International Economics, Elsevier, vol. 14(1-2), pages 103-114, February. [Downloadable!] (restricted)
  4. Djajic, Slobodan, 1986. "International migration, remittances and welfare in a dependent economy," Journal of Development Economics, Elsevier, vol. 21(2), pages 229-234, May. [Downloadable!] (restricted)
  5. Jones, Ronald W. & Coelho, Isaias & Easton, Stephen T., 1986. "The theory of international factor flows: The basic model," Journal of International Economics, Elsevier, vol. 20(3-4), pages 313-327, May. [Downloadable!] (restricted)
  6. Djajic, Slobodan, 1998. "Emigration and welfare in an economy with foreign capital," Journal of Development Economics, Elsevier, vol. 56(2), pages 433-445, August. [Downloadable!] (restricted)
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Cited by:
(explanations, 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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This page was last updated on 2009-12-14.

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