Fiscal Revenues and Commitment in Immigration Amnesties
AbstractReasons to grant immigration amnesties include the intention to reduce the weight of the informal sector and the attempt to identify employers of undocumented workers. However, it is incontestable that potential fiscal gains are important: tax revenues are crucial in all kinds of amnesties. Nevertheless, over the last 30 years 24% of applications have been rejected. It is still unexplained why governments accept this loss of fiscal base. We argue that applying for amnesty is basically selfincrimination, and that immigration-averse governments have an incentive to exploit the applications to identify and expel illegal workers. In our Nash equilibrium only applicants with the highest income are granted amnesty, and the poorest immigrants do not apply. In addition, it is not possible to establish a reputation because the players are different every time the game is repeated. Thus, fiscal revenues are sub-optimal and amnesties are an inefficient way to make illegal workers come forward.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 315.
Date of creation: 28 May 2012
Date of revision:
Amnesty; illegal immigration; time consistency; incentive compatibility;
Find related papers by JEL classification:
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
- H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-13 (All new papers)
- NEP-IUE-2012-06-13 (Informal & Underground Economics)
- NEP-MIG-2012-06-13 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:pdn:wpaper:23 is not listed on IDEAS
- Hanson, G.H. & Spilimbergo, A., 1999.
"Political Economy, Sectoral Shocks, and Border Enforcement,"
449, Research Seminar in International Economics, University of Michigan.
- Gordon H. Hanson & Antonio Spilimbergo, 2001. "Political economy, sectoral shocks, and border enforcement," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 612-638, August.
- Gordon H. Hanson & Antonio Splimbergo, 1999. "Political Economy, Sectoral Shocks, and Border Enforcement," NBER Working Papers 7315, National Bureau of Economic Research, Inc.
- Epstein, Gil S & Hillman, Arye L. & Weiss, Avi, 1998.
"Creating Illegal Immigrants,"
CEPR Discussion Papers
1796, C.E.P.R. Discussion Papers.
- repec:pdn:wpaper:6 is not listed on IDEAS
- Gil Epstein & Avi Weiss, 2011.
"The why, when, and how of immigration amnesties,"
Journal of Population Economics,
Springer, vol. 24(1), pages 285-316, January.
- Ira N. Gang & Myeong-Su Yun, 2006. "Immigration Amnesty and Immigrant's Earnings," Departmental Working Papers 200632, Rutgers University, Department of Economics.
- Karin Mayr & Steffen Minter & Tim Krieger, 2009.
"Policies on illegal immigration in a federation,"
Working Papers CIE
23, University of Paderborn, CIE Center for International Economics.
- Karlson, Stephen H. & Katz, Eliakim, 2003. "A positive theory of immigration amnesties," Economics Letters, Elsevier, vol. 78(2), pages 231-239, February.
- Chau, Nancy H, 2001. "Strategic Amnesty and Credible Immigration Reform," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 604-34, July.
- Tim Krieger & Steffen Minter, 2007. "Immigration amnesties in the southern EU member states - a challenge for the entire EU?," Working Papers CIE 6, University of Paderborn, CIE Center for International Economics.
- Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, vol. 15(4), pages 585-604, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio).
If references are entirely missing, you can add them using this form.