We study immigration control in a simple one-good model of a homogeneous population in a congested world. We compare quota, the predominant instrument of immigration control, with an entrance price or immigration toll. In our model, an absence of immigration controls (a world of free movement) is first-best efficient and equitable. We show that when the income disparity at the initial population is sufficiently large, a quota system is characterized by an inefficient prohibition of immigration. Tolls restore efficiency, but enable the migrant-receiving country to capture all efficiency gains from migration. We conclude that free movement dominates tolls, and tolls dominate quota.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1271.
Find related papers by JEL classification: F22 - International Economics - - International Factor Movements and International Business - - - International Migration H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods