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Policies on illegal immigration in a federation

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Author Info
Karin Mayr ()
Steffen Minter ()
Tim Krieger ()

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Abstract

Illegal immigration is a major policy challenge in Europe, in particular in countries on the external border of the EU such as Italy or Spain. However, there are likely to be important e ects on the rest of the EU, too, depending on the policies against illegal immigration in border countries. This paper determines optimal enforcement and amnesty policies on illegal immigration in a federation with border and non-border countries. We show that in the Nash equilibrium with positive enforcement spending in both countries, total enforcement spending is too low to maximize joint welfare. We nd that in this case a side payment can be necessary to achieve the cooperative optimum, depending on the relative size of populations in the two countries.

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File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0909.pdf
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0909.

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Date of creation: Dec 2008
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Handle: RePEc:vie:viennp:0909

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Web page: http://www.univie.ac.at/vwl

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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  1. Chiswick, Barry R, 1988. "Illegal Immigration and Immigration Control," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 101-15, Summer. [Downloadable!] (restricted)
  2. Robert Fenge & Volker Meier, 2006. "Subsidies for Wages and Infrastructure: How to Restrain Undesired Immigration," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. 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. [Downloadable!] (restricted)
  4. Epstein, Gil S. & Weiss, Avi, 2001. "A Theory of Immigration Amnesties," IZA Discussion Papers 302, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Carter, Thomas J., 1999. "Illegal immigration in an efficiency wage model," Journal of International Economics, Elsevier, vol. 49(2), pages 385-401, December. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. Friedberg, Rachel M & Hunt, Jennifer, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring. [Downloadable!] (restricted)
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  8. Karlson, Stephen H. & Katz, Eliakim, 2003. "A positive theory of immigration amnesties," Economics Letters, Elsevier, vol. 78(2), pages 231-239, February. [Downloadable!] (restricted)
  9. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer, vol. 21(3), pages 627-648, July. [Downloadable!] (restricted)
  10. Tim Krieger & Steffen Minter, 2007. "Immigration amnesties in the southern EU member states - a challenge for the entire EU?," Working Papers 6, University of Paderborn, CIE Center for International Economics. [Downloadable!]
  11. Thomas J. Carter, 2005. "Undocumented Immigration and Host-Country Welfare: Competition Across Segmented Labor Markets," Journal of Regional Science, Blackwell Publishing, vol. 45(4), pages 777-795. [Downloadable!] (restricted)
  12. Giovanni Facchini & Oliver Lorz & Gerald Willmann, 2006. "Asylum seekers in Europe: the warm glow of a hot potato," Journal of Population Economics, Springer, vol. 19(2), pages 411-430, June. [Downloadable!] (restricted)
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  13. Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August. [Downloadable!] (restricted)
  14. Greenwood, Michael J & McDowell, John M, 1986. "The Factor Market Consequences of U.S. Immigration," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1738-72, December. [Downloadable!] (restricted)
  15. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
    Other versions:
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