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Temporary Migration Policies and Welfare of the Host and Source Countries: A Game-Theoretic Approach

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  • Slobodan Djajic
  • Michael S. Michael

Abstract

This paper 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 with the ones that emerge in a cooperative setting.

Suggested Citation

  • 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.
    • Handle: RePEc:ces:ceswps:_2811
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    References listed on IDEAS

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    Cited by:

    1. Giuseppe Arcangelis & Majlinda Joxhe, 2015. "How do migrants save? Evidence from the British Household Panel Survey on temporary and permanent migrants versus natives," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    2. Slobodan Djaji, 2011. "Reforming the System of International Migration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 8, Edward Elgar Publishing.
    3. Moritz Bonn, 2013. "On the Interdependence of Illegal and Legal Immigration," MAGKS Papers on Economics 201301, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Jakubiak Igor, 2017. "Migration and Welfare Systems – State of the Art and Research Challenges," Central European Economic Journal, Sciendo, vol. 1(48), pages 51-70, November.
    5. Paweł Kaczmarczyk, 2013. "Are immigrants a burden for the state budget? Review paper," RSCAS Working Papers 2013/79, European University Institute.
    6. Kaczmarczyk, Pawel, 2015. "Burden or Relief? Fiscal Impacts of Recent Ukrainian Migration to Poland," IZA Discussion Papers 8779, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    temporary migration; remittances; migration policy;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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