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Paper Walls Are Easier to Tear Down: Passport Costs and Legal Barriers to Emigration

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  • McKenzie, David

Abstract

Increased attention to the development potential of international migration has led to calls for greater global cooperation and for industrial countries to consider temporary worker programs and other options for increasing the number of immigrants admitted. But less attention has been devoted to policies that migrant-sending countries pursue that impact on the ability of people to emigrate under the existing system. This paper documents the existence and impact of two such policies: passport costs and legal restrictions on emigration. New data collected on passport costs in 127 countries reveals enormous variation in the cost of a passport from one country to the next. One in every 10 countries in the sample is found to have passport costs exceeding 10 percent of annual per capita income. High passport costs are found to be associated with poor governance, especially in terms of the quality of the bureaucracy, and with lower levels of migration. Countries that place legal restrictions on the rights of women to emigrate are also found to have lower migration rates than countries with similar income and population levels. These findings suggest there is scope for some developing countries to receive greater benefits from migration by tearing down the paper walls they place around their own citizens.
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Suggested Citation

  • McKenzie, David, 2007. "Paper Walls Are Easier to Tear Down: Passport Costs and Legal Barriers to Emigration," World Development, Elsevier, vol. 35(11), pages 2026-2039, November.
  • Handle: RePEc:eee:wdevel:v:35:y:2007:i:11:p:2026-2039
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    References listed on IDEAS

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    1. Daniel Kaufmann & Aart Kraay & Massimo Mastruzzi, 2003. "Governance Matters III: Governance Indicators for 1996-2002," Macroeconomics 0308006, University Library of Munich, Germany.
    2. John Gibson & David McKenzie & Halahingano Rohorua, 2006. "How Cost Elastic are Remittances? Estimates from Tongan Migrants in New Zealand," Working Papers in Economics 06/02, University of Waikato.
    3. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2005. "Governance matters IV : governance indicators for 1996-2004," Policy Research Working Paper Series 3630, The World Bank.
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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