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Tradable Immigration Quotas

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  • Fernández-Huertas Moraga, Jesús

    ()
    (FEDEA, Madrid)

  • Rapoport, Hillel

    ()
    (Paris School of Economics)

Abstract

International migration is maybe the single most effective way to alleviate poverty at a global level. 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 all those (individuals and governments) who care about world poverty. This implies that the existing international migration regime is inefficient as it fails to internalize such externality. In addition, host countries quite often restrict immigration due to its apparently unbearable social and political costs. However these costs are never measured and made comparable across countries. In this paper we first discuss theoretically how tradable immigration quotas (TIQs) can reveal information on such costs and, once coupled with a matching mechanism taking into account migrants’ preferences, generate substantial welfare gains for all the parties involved. We then propose two potential applications: a market for the resettlement of international (e.g., climate change) refugees, and an extension of the US diversity lottery to a larger set of host countries and other immigration targets. Both applications are seen as possible precursors to a full implementation of a TIQs system.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5765.

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Length: 37 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5765

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Keywords: refugees; tradable quotas; immigration policy; immigration; international public goods; climate change;

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References

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  1. Should immigration quotas be traded?
    by Economic Logician in Economic Logic on 2011-07-14 14:32:00
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Cited by:
  1. Emmanuelle Auriol & Alice Mesnard, 2012. "Sale Of Visas: A Smuggler's Final Song?," CReAM Discussion Paper Series 1217, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Biavaschi, Costanza & Elsner, Benjamin, 2013. "Let's Be Selective about Migrant Self-Selection," IZA Discussion Papers 7865, Institute for the Study of Labor (IZA).
  3. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00825816, HAL.
  4. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 13046, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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