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Sustainable Migration Policies

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  • Pierre M. Picard

    ()
    (Departement Economie, University of Luxembourg)

  • Tim Worrall

    ()
    (Economics, School of Social Sciences, University of Manchester)

Abstract

This paper considers whether countries might mutually agree a policy of open borders, allowing free movement of workers across countries. For the countries to agree, the short run costs must outweighed by the long term benefits that result from better labour market flexibility and income smoothing. We show that such policies are less likely to be adopted when workers are less risk averse workers and when countries trade more. More surprisingly, we find that some congestion costs can help. This reverses the conventional wisdom that congestion costs tend to inhibit free migration policies.

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Bibliographic Info

Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 1122.

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Length: 51 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:man:sespap:1122

Note: The second author gratefully acknowledges the support of the Hallsworth Research Fellowship Fund at the University of Manchester.
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Keywords: Migration; Self-enforcing mechanism; Repeated games.;

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  16. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, September.
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