IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v22y2013i3p454-475.html
   My bibliography  Save this article

Guest worker programs: A theoretical analysis of welfare of the host and source countries

Author

Listed:
  • Slobodan Djajić
  • Michael S. Michael

Abstract

This article examines the interaction between migration policies of the host and source countries in the context of a model of guest-worker migration. For the host, the objective is to provide low-cost labor for its employers while avoiding illegal immigration. It optimizes over these objectives by setting the time limit of a guest-worker permit. The source country seeks remittance flows and return migration by offering fiscal benefits to returnees. Within this framework, we solve for the Nash equilibrium values of the migration policy instruments and compare them, to the extent possible, with the ones that emerge in a cooperative setting.

Suggested Citation

  • Slobodan Djajić & Michael S. Michael, 2013. "Guest worker programs: A theoretical analysis of welfare of the host and source countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(3), pages 454-475, April.
    • Handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:454-475
    DOI: 10.1080/09638199.2011.566932
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2011.566932
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638199.2011.566932?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Djajić, Slobodan & Vinogradova, Alexandra, 2013. "Undocumented migrants in debt," Labour Economics, Elsevier, vol. 21(C), pages 15-24.
    2. Schiff, Maurice, 2007. "Optimal Immigration Policy: Permanent, Guest-Worker, or Mode IV?," IZA Discussion Papers 2871, Institute of Labor Economics (IZA).
    3. Catalina Amuedo-Dorantes, 2006. "Remittances and their microeconomic impacts: evidence from Latin America," Proceedings, Federal Reserve Bank of Dallas, pages 187-197.
    4. Alan de Brauw & Scott Rozelle, 2003. "Household Investment through migration in Rural China," Department of Economics Working Papers 2003-01, Department of Economics, Williams College.
    5. James F. Hollifield & Pia M. Orrenius & Thomas Osang, 2006. "Migration, trade, and development: an overview," Proceedings, Federal Reserve Bank of Dallas, pages 3-8.
    6. Claus Aastrup Jensen & Nikolaj Malchow-Møller & Jan Rose Skaksen, 2010. "Does coordination of immigration policies among destination countries increase immigration?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(3), pages 357-384.
    7. Puri, Shivani. & Ritzema, Tineke., 1999. "Migrant worker remittances, micro-finance and the informal economy : prospects and issues," ILO Working Papers 993576093402676, International Labour Organization.
    8. repec:ilo:ilowps:357609 is not listed on IDEAS
    9. Robert E.B. Lucas, 2005. "International Migration and Economic Development," Books, Edward Elgar Publishing, number 3826.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Slobodan Djajic, 2014. "Guest-Worker Programs," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(2), pages 16-19, 07.
    2. Slobodan Djajic & Alice Mesnard, 2013. "Guest Workers in the Underground Economy," RF Berlin - CReAM Discussion Paper Series 1324, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. repec:ces:ifodic:v:12:y:2014:i:2:p:19116207 is not listed on IDEAS
    4. Florian Knauth & Jens Wrona, 2018. "There and Back Again: A Simple Theory of Planned Return Migration," CESifo Working Paper Series 7388, CESifo.
    5. Knauth, Florian & Wrona, Jens, 2018. "There and back again: A simple theory of planned return migration," DICE Discussion Papers 290, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Djajić, Slobodan & Mesnard, Alice, 2015. "Guest workers in the underground economy," Labour Economics, Elsevier, vol. 35(C), pages 53-62.
    7. Slobodan Djajic, 2014. "Guest-Worker Programs," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 16-19, July.
    8. Slobodan Djajić & Alice Mesnard, 2013. "Guest Workers in the Underground Economy," IHEID Working Papers 15-2013, Economics Section, The Graduate Institute of International Studies.
    9. Djajic, Slobodan & Mesnard, Alice, 2014. "Guest Workers in the Underground Economy," CEPR Discussion Papers 10074, C.E.P.R. Discussion Papers.
    10. Chaitali Sinha, 2017. "International Migration and Welfare Implications," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(2), pages 209-229, December.
    11. Djajic, S. & Mesnard, A., 2013. "Guest Workers in the Underground Economy," Working Papers 13/05, Department of Economics, City University London.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Slobodan Djajic & Michael S. Michael, 2009. "Temporary Migration Policies and Welfare of the Host and Source Countries: A Game-Theoretic Approach," CESifo Working Paper Series 2811, CESifo.
    2. Alexandra Vinogradova, 2014. "Legal and illegal immigrants: an analysis of optimal saving behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 201-224, January.
    3. Juthathip Jongwanich, 2007. "Workers’ Remittances, Economic Growth and Poverty in Developing Asia and the Pacific Countries," MPDD Working Paper Series WP/07/01, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    4. Wouterse, Fleur, 2012. "Migration and Rural Welfare: The Impact of Potential Policy Reforms in Europe," World Development, Elsevier, vol. 40(12), pages 2427-2439.
    5. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2019. "The effects of foreign aid on refugee flows," European Economic Review, Elsevier, vol. 112(C), pages 127-147.
    6. Javorcik, Beata S. & Özden, Çaglar & Spatareanu, Mariana & Neagu, Cristina, 2011. "Migrant networks and foreign direct investment," Journal of Development Economics, Elsevier, vol. 94(2), pages 231-241, March.
    7. Driouchi, Ahmed & Zouag, Nada, 2010. "Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies," MPRA Paper 21799, University Library of Munich, Germany, revised 01 Apr 2010.
    8. Kabinet Kaba & Mahamat Moustapha, 2021. "Remittances and firm performance in sub-Saharan Africa: evidence from firm-level data," Working Papers DT/2021/07, DIAL (Développement, Institutions et Mondialisation).
    9. Thomas H.W. ZIESEMER, 2012. "Worker remittances and government behaviour in the receiving countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 37-59, December.
    10. Horas Djulius & Nurul Qomariah & Iwan Sidharta, 2017. "Is Remittance Changing the Consumption Patterns of Migrant Families?," Business, Management and Economics Research, Academic Research Publishing Group, vol. 3(7), pages 78-84, 07-2017.
    11. Kakali Mukhopadhyay & Debesh Chakraborty, 2005. "Is liberalization of trade good for the environment? Evidence from India," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 12(1), pages 109-136, June.
    12. McCarthy, Nancy & Carletto, Calogero & Davis, Benjamin & Maltsoglou, Irini, 2006. "Assessing the impact of massive out-migration on agriculture," ESA Working Papers 289053, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    13. Okeke, Edward N., 2013. "Brain drain: Do economic conditions “push” doctors out of developing countries?," Social Science & Medicine, Elsevier, vol. 98(C), pages 169-178.
    14. Grossmann, Volker & Stadelmann, David, 2011. "Does international mobility of high-skilled workers aggravate between-country inequality?," Journal of Development Economics, Elsevier, vol. 95(1), pages 88-94, May.
    15. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    16. Bouton, Lawrence & Paul, Saumik & Tiongson, Erwin R., 2011. "The impact of emigration on source country wages : evidence from the Republic of Moldova," Policy Research Working Paper Series 5764, The World Bank.
    17. Edsel L. Beja Jr, 2011. "Do international remittances cause Dutch disease?," Migration Letters, Migration Letters, vol. 8(2), pages 132-140, October.
    18. Volker Grossmann & David Stadelmann, 2013. "Wage Effects of High-Skilled Migration: International Evidence," The World Bank Economic Review, World Bank, vol. 27(2), pages 297-319.
    19. Jacques Poot & Anna Strutt, 2010. "International Trade Agreements and International Migration," The World Economy, Wiley Blackwell, vol. 33(12), pages 1923-1954, December.
    20. Adams, Samuel & Klobodu, Edem Kwame Mensah, 2016. "Remittances, regime durability and economic growth in Sub-Saharan Africa (SSA)," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 1-8.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:22:y:2013:i:3:p:454-475. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.