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Can market mechanisms solve the refugee crisis?

Author

Listed:
  • Jesús Fernández-Huertas Moraga

    (Universidad Carlos III de Madrid, and IAE (CSIC), Spain, and IZA, Germany)

  • Martin Hagen

    (CUNEF Universidad, Spain)

Abstract

Ever since the major inflow of refugees (the “refugee crisis”) in 2015 and 2016, there has been heated debate about the appropriate distribution of refugees in the EU. Current policies revolve around mandatory quotas, which disregard the preferences of EU members and refugees alike. This problem can be addressed with two market mechanisms. First, tradable quotas minimize the cost of asylum provision for host countries. Second, a matching system gives refugees more discretion over where they are sheltered. While this proposal is theoretically appealing, it has yet to be tested in practice.

Suggested Citation

  • Jesús Fernández-Huertas Moraga & Martin Hagen, 2021. "Can market mechanisms solve the refugee crisis?," World of Labour, LISER, pages 244-244, October.
    • Handle: RePEc:iza:izawol:journl:2021:n:244
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    Cited by:

    1. is not listed on IDEAS
    2. Petros Xepapadeas & Ioannis Mourtos, 2022. "Refugee allocation mechanisms: theory and applications for the European Union," Operational Research, Springer, vol. 22(4), pages 4557-4584, September.

    More about this item

    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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