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Trade immigration quotas

Author

Listed:
  • Jesús Fernández-Huertas Moraga

    (IAE - FEDEA)

  • Hillel Rapoport

    (Department of Economics [Israël] - Bar-Ilan University [Israël], CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

International migration is maybe the single most effective way to alleviate global poverty. When a given host country allows more immigrants in, this creates costs and benefits for that particular country as well as a positive externality for individuals and governments who care about world poverty. Host countries quite often restrict immigration due to its important social and political costs, however these costs are never measured and made comparable across countries. In this paper we first show theoretically that tradable immigration quotas (TIQs) can reveal countries' comparative advantages in hosting immigrants and -- once coupled with a matching mechanism taking migrants' preferences over destinations and countries' preferences over migrants' types into account -- allow for exploiting them efficiently. We then discuss three potential applications: a market for the resettlement of international refugees, a market for the resettlement of migrants displaced by climate change, and the creation of an OECD poverty-reduction visa program adapted from the US green card lottery.

Suggested Citation

  • Jesús Fernández-Huertas Moraga & Hillel Rapoport, 2014. "Trade immigration quotas," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01045120, HAL.
    • Handle: RePEc:hal:cesptp:hal-01045120
    DOI: 10.1016/j.jpubeco.2014.04.002
    as

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