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Auctioning Immigration Visas

  • David R. Collie

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. Copyright © 2009 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2009.00521.x
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Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 13 (2009)
Issue (Month): 4 (November)
Pages: 687-694

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Handle: RePEc:bla:rdevec:v:13:y:2009:i:4:p:687-694
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  1. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring.
  2. Jagdish Bhagwati, 1958. "Immiserizing Growth: A Geometrical Note," Review of Economic Studies, Oxford University Press, vol. 25(3), pages 201-205.
  3. Richard B. Freeman, 2006. "People Flows in Globalization," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 145-170, Spring.
  4. Findlay, Ronald, 1982. "International distributive justice : A trade theoretic approach," Journal of International Economics, Elsevier, vol. 13(1-2), pages 1-14, August.
  5. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
  6. Timothy J. Hatton, 2007. "Should we have a WTO for international migration?," Economic Policy, CEPR;CES;MSH, vol. 22, pages 339-383, 04.
  7. 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.
  8. Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
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