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Politics of immigration - quotas of entrance and hidden economy

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  • Gemma Larramona

    ()

  • Jesus Clemente

    ()

  • Fernando Pueyo

    ()

Abstract

In spite of the fact that in recent years there has been a growing interest for the hidden economy, little attention has been lent to its relation with the illegal immigration as a consequence of the establishment of quotas. The objective of this work is to analyze the effect of a change in the quotas of legal immigrants in the size of the legal and illegal migration, the underground economy, and in the incomes perceived by the workers. The main conclusions are that, as opposed to the short time, in the long-term equilibrium, an increment of the quota does not have effect on the size of the migration, but in the composition between legal and illegal. On the other hand diminishes the work destined to the management of the underground economy by the reduction of illegal immigrants in the stationary state, however the effect is positive in the short run by the “called effect” of illegal immigrants that carries an increment in the quota.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p536.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p536

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  1. Lundborg, Per & Segerstrom, Paul S., 1998. "The Growth and Welfare Effects of International Mass Migration," Working Paper Series, Trade Union Institute for Economic Research 146, Trade Union Institute for Economic Research.
  2. Hazari, Bharat R. & Sgro, Pasquale M., 2003. "The simple analytics of optimal growth with illegal migrants," CEPREMAP Working Papers (Couverture Orange) 0301, CEPREMAP.
  3. Berry, R Albert & Soligo, Ronald, 1969. "Some Welfare Aspects of International Migration," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 77(5), pages 778-94, Sept./Oct.
  4. Gordon M. Myers & Yorgos Y. Papageorgiou, 2002. "Towards a Better System for Immigration Control," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 42(1), pages 51-74.
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