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Asylum seekers in Europe: the warm glow of a hot potato

Author

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  • Giovanni Facchini

    ()

  • Oliver Lorz

    ()

  • Gerald Willmann

    ()

Abstract

The Common European Asylum System calls for increased coordination of the EU countries’ policies towards asylum seekers and refugees. In this paper, we provide a formal analysis of the effects of coordination, explicitly modelling the democratic process through which policy is determined. In a symmetric, two-country citizen-candidate setup, in which accepting asylum seekers in one country generates a cross-border externality in the other, we show that coordination is desirable. Internalizing the externality leads to a welfare improvement over the non–cooperative outcome. However, contrary to suggestions by many observers, we show that allowing for cross-country transfers in the cooperative outcome leads to a welfare inferior outcome because the possibility of compensation exacerbates strategic delegation effects.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Giovanni Facchini & Oliver Lorz & Gerald Willmann, 2006. "Asylum seekers in Europe: the warm glow of a hot potato," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 411-430, June.
  • Handle: RePEc:spr:jopoec:v:19:y:2006:i:2:p:411-430
    DOI: 10.1007/s00148-005-0059-2
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    References listed on IDEAS

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    1. John Douglas Wilson, 1990. "Are Efficiency Improvements In Government Transfer Policies Self-Defeating In Political Equilibrium?," Economics and Politics, Wiley Blackwell, vol. 2(3), pages 241-258, November.
    2. Timothy J. Hatton, 2004. "Seeking asylum in Europe," Economic Policy, CEPR;CES;MSH, vol. 19(38), pages 5-62, April.
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    5. Boeri, Tito & Hanson, Gordon H. & McCormick, Barry (ed.), 2002. "Immigration Policy and the Welfare System: A Report for the Fondazione Rodolfo Debenedetti," OUP Catalogue, Oxford University Press, number 9780199256310.
    6. Martin J. Osborne & Al Slivinski, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 65-96.
    7. Lorz, Oliver & Willmann, Gerald, 2005. "On the endogenous allocation of decision powers in federal structures," Journal of Urban Economics, Elsevier, vol. 57(2), pages 242-257, March.
    8. Willmann, Gerald, 2003. "Why Legislators are Protectionists: The Role of Majoritarian Voting in Setting Tariffs," Economics Working Papers 2003-10, Christian-Albrechts-University of Kiel, Department of Economics.
    9. Besley, Timothy & Coate, Stephen, 2003. "Centralized versus decentralized provision of local public goods: a political economy approach," Journal of Public Economics, Elsevier, vol. 87(12), pages 2611-2637, December.
    10. Segendorff, Bjorn, 1998. "Delegation and Threat in Bargaining," Games and Economic Behavior, Elsevier, vol. 23(2), pages 266-283, May.
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    Citations

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    Cited by:

    1. repec:oup:ecpoli:v:32:y:2017:i:91:p:497-550. is not listed on IDEAS
    2. Stark, Oded, 2010. "Casting the naturalization of asylum seekers as an economic problem," Economics Letters, Elsevier, vol. 108(3), pages 286-290, September.
    3. Giordani, Paolo E. & Ruta, Michele, 2013. "Coordination failures in immigration policy," Journal of International Economics, Elsevier, vol. 89(1), pages 55-67.
    4. Facchini, Giovanni & Silva, Peri & Willmann, Gerald, 2013. "The customs union issue: Why do we observe so few of them?," Journal of International Economics, Elsevier, vol. 90(1), pages 136-147.
    5. Mayr, Karin & Minter, Steffen & Krieger, Tim, 2012. "Policies on illegal immigration in a federation," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 153-165.
    6. Leonid V. Azarnert, 2018. "Refugee Resettlement, Redistribution and Growth," CESifo Working Paper Series 6961, CESifo Group Munich.
    7. Fasani, Francesco & Frattini, Tommaso & Minale, Luigi, 2018. "(The Struggle for) Refugee Integration into the Labour Market: Evidence from Europe," IZA Discussion Papers 11333, Institute for the Study of Labor (IZA).
    8. Alessandra Casarico & Giovanni Facchini & Cecilia Testa, 2017. "Asylum Policy and Illegal Immigration: Perspectives and Challenges," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 14-20, 02.
    9. Timothy J. Hatton, 2015. "Asylum Policy in the EU: the Case for Deeper Integration," CESifo Economic Studies, CESifo, vol. 61(3-4), pages 605-637.
    10. Tim Hatton, 2015. "Setting policy on asylum: Has the EU got it right?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 124-124, February.
    11. Giovanni Facchini & Cecilia Testa, 2009. "Who Is Against a Common Market?," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 1068-1100, September.
    12. Djajić, Slobodan, 2014. "Asylum seeking and irregular migration," International Review of Law and Economics, Elsevier, vol. 39(C), pages 83-95.
    13. repec:ces:ifodic:v:14:y:2017:i:4:p:19271452 is not listed on IDEAS
    14. Gil Epstein, 2006. "The political economy of population economics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 255-257, June.
    15. Slobodan Djajić & Michael S. Michael, 2014. "Controlling Illegal Immigration: On the Scope for Cooperation with a Transit Country," Review of International Economics, Wiley Blackwell, vol. 22(4), pages 808-824, September.
    16. Christian Dustmann & Francesco Fasani & Tommaso Frattini & Luigi Minale & Uta Schönberg, 2017. "On the economics and politics of refugee migration," Economic Policy, CEPR;CES;MSH, vol. 32(91), pages 497-550.
    17. Giuseppe Russo & Luigi Senatore, 2013. "Who contributes? A strategic approach to a European immigration policy," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-16, December.
    18. Francesco Fasani & Tommaso Frattini & Luigi Minale, 2017. "The (Struggle for) Labour Market Integration of Refugees: Evidence from European Countries," CReAM Discussion Paper Series 1716, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    19. Oliver Lorz & Gerald Willmann, 2008. "Enlargement versus Deepening: The Trade-off Facing Economic Unions," Working Papers VIVES Research Centre for Regional Economics 2, KU Leuven, Faculty of Economics and Business, VIVES Research Centre for Regional Economics.
    20. Timothy J. Hatton, 2017. "The Common European Asylum System – the Role of Burden-sharing," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(4), pages 09-13, 02.
    21. repec:ces:ifodic:v:14:y:2017:i:4:p:19271454 is not listed on IDEAS
    22. Yuji Tamura, 2017. "Asylum providers: Hawks or Doves?," CEPR Discussion Papers 699, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    23. Tim Krieger & Steffen Minter, 2007. "Immigration amnesties in the southern EU member states - a challenge for the entire EU?," Working Papers CIE 6, Paderborn University, CIE Center for International Economics.

    More about this item

    Keywords

    Political economy; Asylum policy; Migration; J61; H77; F22;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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