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The welfare economics of immigration control

Author

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  • Paul Levine

    () (Department of Economics, University of Surrey, Guildford, GU2 5XH Surrey, UK)

Abstract

This paper develops a Harris-Todaro (HT) type model of East-West migration in which labour market imperfections prevent market clearing in both blocs. The model encompasses two extremes of perfectly flexible wages with full employment on the one hand, and the HT scenario where the real wage in the host country is fixed, on the other. Welfare analysis compares the laissez-faire migration equilibrium based on explicit calculations of potential migrants without immigration controls in the West, with the socially optimal level of migration. The paper examines the issue of immigration control by developing a model of illegal immigration in which the incentives facing the potentially illegal immigrant are explicitly modelled.

Suggested Citation

  • Paul Levine, 1999. "The welfare economics of immigration control," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 23-43.
  • Handle: RePEc:spr:jopoec:v:12:y:1999:i:1:p:23-43
    Note: Received: 3 April 1997/Accepted 16 March 1998
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    Citations

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    Cited by:

    1. Baas, Timo & Brücker, Herbert, 2012. "The macroeconomic consequences of migration diversion: Evidence for Germany and the UK," Structural Change and Economic Dynamics, Elsevier, vol. 23(2), pages 180-194.
    2. Gil S. Epstein & Odelia Heizler (Cohen), 2013. "Minimum wages and the creation of illegal migration," Economics Bulletin, AccessEcon, vol. 33(1), pages 434-441.
    3. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
    4. Brücker, Herbert & Hauptmann, Andreas & Jahn, Elke J. & Upward, Richard, 2014. "Migration and imperfect labor markets: Theory and cross-country evidence from Denmark, Germany and the UK," European Economic Review, Elsevier, vol. 66(C), pages 205-225.
    5. Herbert Brücker & Elke J. Jahn, 2011. "Migration and Wage‐setting: Reassessing the Labor Market Effects of Migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113, pages 286-317, June.
    6. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
    7. Woodland, Alan D. & Yoshida, Chisato, 2006. "Risk preference, immigration policy and illegal immigration," Journal of Development Economics, Elsevier, vol. 81(2), pages 500-513, December.
    8. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement: Paper Presented at the 41st Economic Policy Panel in Luxembourg, 15/16 April 2005," Discussion Papers of DIW Berlin 481, DIW Berlin, German Institute for Economic Research.
    9. Baas, Timo & Brücker, Herbert, 2008. "Macroeconomic consequences of migration diversion : a CGE simulation for Germany and the UK," IAB Discussion Paper 200803, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Subrata Ghatak & Alan Mulhern & John Watson, 2008. "Inter-Regional Migration in Transition Economies: The Case of Poland," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 209-222, February.
    11. Benjamin Powell, 2012. "Coyote ugly: the deadweight cost of rent seeking for immigration policy," Public Choice, Springer, vol. 150(1), pages 195-208, January.
    12. Pin, Paolo & Rogers, Brian W., 2015. "Cooperation, punishment and immigration," Journal of Economic Theory, Elsevier, vol. 160(C), pages 72-101.
    13. Silaghi, Monica Ioana & Ghatak, Subrata, 2011. "Why do not They Move from Rural to Urban Areas? Inter-Regional Migration in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 143-158, March.
    14. Massimiliano Serati & Michela Martinoia, 2008. "The East-West migration in Europe: skill levels of migrants and their effects on the european labour market," LIUC Papers in Economics 208, Cattaneo University (LIUC).
    15. Boeri, Tito & Brücker, Herbert, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute for the Study of Labor (IZA).
    16. Ghatak, Subrata & Mulhern, Alan & Watson, John, 2007. "Inter-regional migration in transition economies: the case of Poland," Economics Discussion Papers 2007-7, School of Economics, Kingston University London.
    17. Wang Yulian & Zhu Hongfei, 2014. "The Role of Risk Preference in Immigration and Minimum Wage Policies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1-16, October.
    18. Ghatak, Subrata & Moore, Tomoe, 2007. "Migration and the EU Labour Market: Granger Causality Tests on a Panel VAR," Economics Discussion Papers 2007-6, School of Economics, Kingston University London.

    More about this item

    Keywords

    Migration · labour markets · immigration control;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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