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Auctioning Immigration Visas

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  • David R. Collie

Abstract

Freeman (2006) suggested that auctioning immigration visas and redistributing the revenue to native residents in the host country would increase migration from low‐income to high‐income countries. The effect of the auctioning of immigration visas, in the Ricardian model from Findlay (1982), on the optimal level of immigration for the host country is considered. It is shown that auctioning immigration visas will lead to a positive level of immigration only if the initial wage difference between the host country and the source country is substantial. The cost of the immigration visa is more than half the earnings of the immigrant worker.

Suggested Citation

  • David R. Collie, 2009. "Auctioning Immigration Visas," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 687-694, November.
  • Handle: RePEc:bla:rdevec:v:13:y:2009:i:4:p:687-694
    DOI: 10.1111/j.1467-9361.2009.00521.x
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    References listed on IDEAS

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    1. Richard B. Freeman, 2006. "People Flows in Globalization," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 145-170, Spring.
    2. George J. Borjas, 2021. "The Economic Benefits from Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 13, pages 411-430, World Scientific Publishing Co. Pte. Ltd..
    3. Findlay, Ronald, 1982. "International distributive justice : A trade theoretic approach," Journal of International Economics, Elsevier, vol. 13(1-2), pages 1-14, August.
    4. Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
    5. Collie, David R., 2007. "Migration and trade with external economies of scale," Cardiff Economics Working Papers E2007/23, Cardiff University, Cardiff Business School, Economics Section.
    6. Timothy J. Hatton, 2007. "Should we have a WTO for international migration? [‘The growth of world trade: Tariffs, transport costs and income similarity’]," Economic Policy, CEPR;CES;MSH, vol. 22(50), pages 340-383.
    7. Jagdish Bhagwati, 1958. "Immiserizing Growth: A Geometrical Note," Review of Economic Studies, Oxford University Press, vol. 25(3), pages 201-205.
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    Cited by:

    1. Stark, Oded & Byra, Lukasz & Casarico, Alessandra & Uebelmesser, Silke, 2017. "A critical comparison of migration policies: Entry fee versus quota," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 91-107.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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