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Strategic Amnesty and Credible Immigration Reform

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  • Chau, Nancy H

Abstract

Why do countries that impose employer sanctions to deter the illegal entry of foreign workers nevertheless grant amnesty to illegal immigrants? In this article, I provide a positive theory of amnesty provision in a model where the constrained optimal immigration reform, involving the joint use of employer sanctions and border interdictions, is time-inconsistent. In particular, my framework demonstrates that host countries of immigration can enhance the credibility of their immigration reforms by "binding their own hands" and strategically granting a socially excessive amount of amnesty to illegal workers. Copyright 2001 by University of Chicago Press.

Suggested Citation

  • Chau, Nancy H, 2001. "Strategic Amnesty and Credible Immigration Reform," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 604-634, July.
    • Handle: RePEc:ucp:jlabec:v:19:y:2001:i:3:p:604-34
    DOI: 10.1086/322075
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    References listed on IDEAS

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    1. Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, vol. 23(3-4), pages 315-328, November.
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    3. Ethier, Wilfred J, 1986. "Illegal Immigration," American Economic Review, American Economic Association, vol. 76(2), pages 258-262, May.
    4. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
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