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Can International Migration Ever Be Made a Pareto Improvement?

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Abstract

We argue that compensating losers is more difficult for immigration than for trade and capital movements. While a tax-cum-subsidy mechanism allows the government to turn the gains from trade into a Pareto improvement, the same is not true for the so-called immigration surplus, if the redistributive mechanism is not allowed to discriminate against migrants. We discuss policy conclusions to be drawn from this fundamental asymmetry between migration and other forms of globalization.

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  • Gabriel J Felbermayr & Wilhelm Kohler, 2009. "Can International Migration Ever Be Made a Pareto Improvement?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 305/2009, Department of Economics, University of Hohenheim, Germany.
    • Handle: RePEc:hoh:hohdip:305
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    1. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    2. Gabriel Felbermayr & Wilhelm Kohler, 2014. "Can International Migration Ever Be Made a Pareto Improvement?," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 11, pages 373-393, World Scientific Publishing Co. Pte. Ltd..
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    6. James R. MARKUSEN, 2021. "Factor Movements And Commodity Trade As Complements," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 15, pages 325-340, World Scientific Publishing Co. Pte. Ltd..
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    17. Stark, Oded & Wang, Yong, 2002. "Inducing human capital formation: migration as a substitute for subsidies," Journal of Public Economics, Elsevier, vol. 86(1), pages 29-46, October.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Can migration be Pareto optimal?
      by Economic Logician in Economic Logic on 2009-07-29 19:40:00

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    Cited by:

    1. Felbermayr, Gabriel J. & Hiller, Sanne & Sala, Davide, 2010. "Does immigration boost per capita income?," Economics Letters, Elsevier, vol. 107(2), pages 177-179, May.
    2. Gabriel Felbermayr & Wilhelm Kohler, 2014. "Can International Migration Ever Be Made a Pareto Improvement?," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 11, pages 373-393, World Scientific Publishing Co. Pte. Ltd..
    3. Gabriel Felbermayr, 2016. "Seizing the Opportunity," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(03), pages 16-26, December.

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    More about this item

    Keywords

    Gravity model; international trade; international migration; cross-country income regression;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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