IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Tradable Immigration Quotas

  • Fernández-Huertas Moraga, Jesus
  • Rapoport, Hillel

International migration is maybe the single most e¤ective way to alleviate poverty at a global level. When a given host country allows more immigrants in, this creates costs and bene…ts for that particular country as well as a positive externality for all those (individuals and governments) who care about world poverty. This implies that the existing international migration regime is ine¢ cient as it fails to internalize such externality. In addition, host countries quite often restrict immigration due to its apparently unbearable social and political costs. However these costs are never measured and made comparable across countries. In this paper we …rst discuss theoretically how tradable immigration quotas (TIQs) can reveal information on such costs and, once coupled with a matching mechanism taking into account migrants'preferences, generate substantial welfare gains for all the parties involved. We then propose two potential applications: a market for the resettlement of international (e.g., climate change) refugees, and an extension of the US diversity lottery to a larger set of host countries and other immigration targets. Both applications are seen as possible precursors to a full implementation of a TIQs system.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by FEDEA in its series Working Papers with number 2011-10.

in new window

Date of creation: Jun 2011
Date of revision:
Handle: RePEc:fda:fdaddt:2011-10
Contact details of provider: Web page:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Stavins, Robert Norman, 2010. "The Problem of the Commons: Still Unsettled After 100 Years," Scholarly Articles 4450130, Harvard Kennedy School of Government.
  2. Emmanuelle Auriol & Alice Mesnard, 2012. "Sale Of Visas: A Smuggler's Final Song?," CReAM Discussion Paper Series 1217, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01304131, HAL.
  4. M. L. Weitzman, 1973. "Prices vs. Quantities," Working papers 106, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Fernández-Huertas Moraga, Jesús & Rapoport, Hillel, 2011. "Tradable Immigration Quotas," IZA Discussion Papers 5765, Institute for the Study of Labor (IZA).
  6. Mayda, Anna Maria, 2007. "Why Are People More Pro-trade Than Pro-migration?," CEPR Discussion Papers 6351, C.E.P.R. Discussion Papers.
  7. Jesúús Fernández-Huertas Moraga, 2011. "New Evidence on Emigrant Selection," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 72-96, February.
  8. Petrakis, Emmanuel & Xepapadeas, Anastasios, 1996. "Environmental consciousness and moral hazard in international agreements to protect the environment," Journal of Public Economics, Elsevier, vol. 60(1), pages 95-110, April.
  9. David de la Croix & Axel Gosseries, 2007. "Procreation, Migration and Tradable Quotas," Chapters, in: Population Aging, Intergenerational Transfers and the Macroeconomy, chapter 9 Edward Elgar Publishing.
  10. Docquier, Frédéric & Rapoport, Hillel, 2003. "Remittances and Inequality: A Dynamic Migration Model," IZA Discussion Papers 808, Institute for the Study of Labor (IZA).
  11. Timothy J. Hatton & Jeffrey G. Williamson, 2004. "Refugees, Asylum Seekers and Policy in Europe," NBER Working Papers 10680, National Bureau of Economic Research, Inc.
  12. Christian Dustmann & Ian Preston, 2004. "Racial and Economic Factors in Attitudes to Immigration," CReAM Discussion Paper Series 0401, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  13. McKenzie, David & Rapoport, Hillel, 2007. "Self-selection patterns in Mexico-U.S. migration : the role of migration networks," Policy Research Working Paper Series 4118, The World Bank.
  14. Tim Hatton, 2012. "Asylum Policy in the EU: The Case for Deeper Integration," CEPR Discussion Papers 660, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  15. Tayfun Sönmez & M. Utku Ünver, 2009. "Matching, Allocation, and Exchange of Discrete Resources," Boston College Working Papers in Economics 717, Boston College Department of Economics.
  16. David Mckenzie & Hillel Rapoport, 2004. "Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico," Working Papers 2004-3, Bar-Ilan University, Department of Economics.
  17. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, 06.
  18. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  19. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers 2646, C.E.P.R. Discussion Papers.
  20. Giovanni Facchini & Anna Maria Mayda, 2008. "From individual attitudes towards migrants to migration policy outcomes: Theory and evidence," Economic Policy, CEPR;CES;MSH, vol. 23, pages 651-713, October.
  21. Keohane, Robert O., 1982. "The demand for international regimes," International Organization, Cambridge University Press, vol. 36(02), pages 325-355, March.
  22. Pierre Courtois & Guillaume Haeringer, 2012. "Erratum to: Environmental cooperation: ratifying second-best agreements," Public Choice, Springer, vol. 153(1), pages 261-261, October.
  23. Slobodan Djajic & Michael S. Michael & Alexandra Vinogradova, 2012. "Migration of Skilled Workers: Policy Interaction between Host and Source Countries," University of Cyprus Working Papers in Economics 12-2012, University of Cyprus Department of Economics.
  24. David de la CROIX & Frederic DOCQUIER, 2009. "An Incentive Mechanism to Break the Low-skill Immigration Deadlock," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  25. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  26. Michael A. Clemens & Lant Pritchett, 2008. "Income per Natural: Measuring Development for People Rather Than Places," Population and Development Review, The Population Council, Inc., vol. 34(3), pages 395-434.
  27. Yan Chen & Tayfun Sönmez, 2002. "Improving Efficiency of On-Campus Housing: An Experimental Study," American Economic Review, American Economic Association, vol. 92(5), pages 1669-1686, December.
  28. Michael Clemens & Lant Pritchett, 2008. "Income per natural: Measuring development as if people mattered more than places," Working Papers 143, Center for Global Development.
  29. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 847-904.
  30. Hahn, Robert W. & Stavins, Robert Norman, 2010. "The Effect of Allowance Allocations on Cap-and-Trade System Performance," Scholarly Articles 4449098, Harvard Kennedy School of Government.
  31. Barnett, Jon & Webber, Michael, 2010. "Accommodating migration to promote adaptation to climate change," Policy Research Working Paper Series 5270, The World Bank.
  32. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth Princeton University Press.
  33. Clemens, Michael A. & Montenegro, Claudio E. & Pritchett, Lant, 2008. "The place premium : wage differences for identical workers across the US border," Policy Research Working Paper Series 4671, The World Bank.
  34. Andrew Muller, R. & Mestelman, Stuart & Spraggon, John & Godby, Rob, 2002. "Can Double Auctions Control Monopoly and Monopsony Power in Emissions Trading Markets?," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 70-92, July.
  35. DE LA CROIX, David & GOSSERIES, Axel, 2006. "Population policy through tradable procreation entitlements," CORE Discussion Papers 2006081, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  36. Gordon H. Hanson & Kenneth F. Scheve & Matthew J. Slaughter, 2005. "Public Finance and Individual Preferences Over Globalization Strategies," Working Papers 524, Research Seminar in International Economics, University of Michigan.
  37. Parag A. Pathak & Tayfun Sönmez, 2011. "School Admissions Reform in Chicago and England: Comparing Mechanisms by Their Vulnerability to Manipulation," NBER Working Papers 16783, National Bureau of Economic Research, Inc.
  38. David Card & Christian Dustmann & Ian Preston, 2009. "Immigration, Wages, and Compositional Amenities," CReAM Discussion Paper Series 0929, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  39. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc.
  40. Ryan Bubb & Michael Kremer & David I. Levine, 2011. "The Economics of International Refugee Law," The Journal of Legal Studies, University of Chicago Press, vol. 40(2), pages 367 - 404.
  41. Kevin H. O'Rourke & Richard Sinnott, 2004. "The Determinants of Individual Attitudes Towards Immigration," Trinity Economics Papers 20042, Trinity College Dublin, Department of Economics.
  42. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
  43. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
  44. Ortega, Francesc, 2005. "Immigration quotas and skill upgrading," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1841-1863, September.
  45. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  46. Walmsley Terrie L. & Winters Alan & Ahmed Amer, 2011. "The Impact of the Movement of Labour: Results from a Model of Bilateral Migration Flows," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-24, December.
  47. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, 05.
  48. Alessandra Casella, 1999. "Tradable Deficit Permits: Efficient Implementation of the Stability Pacin the European Monetary Union," NBER Working Papers 7278, National Bureau of Economic Research, Inc.
  49. Abdulkadiroglu, Atila & Sonmez, Tayfun, 1999. "House Allocation with Existing Tenants," Journal of Economic Theory, Elsevier, vol. 88(2), pages 233-260, October.
  50. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
  51. Pierre Courtois & Guillaume Haeringer, 2012. "Environmental cooperation: ratifying second-best agreements," Public Choice, Springer, vol. 151(3), pages 565-584, June.
  52. Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
  53. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
  54. J. H. Dales, 1968. "Land, Water, and Ownership," Canadian Journal of Economics, Canadian Economics Association, vol. 1(4), pages 791-804, November.
  55. Finnemore, Martha & Sikkink, Kathryn, 1998. "International Norm Dynamics and Political Change," International Organization, Cambridge University Press, vol. 52(04), pages 887-917, September.
  56. David McKenzie & John Gibson & Steven Stillman, 2006. "How Important is Selection? Experimental vs Non-experimental Measures of the Income Gains of Migration," Working Papers 06_02, Motu Economic and Public Policy Research.
  57. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, vol. 70(4), pages 1341-1378, July.
  58. Roth, Alvin E., 1985. "The college admissions problem is not equivalent to the marriage problem," Journal of Economic Theory, Elsevier, vol. 36(2), pages 277-288, August.
  59. Friedman, Daniel & Ostroy, Joseph, 1995. "Competitivity in Auction Markets: An Experimental and Theoretical Investigation," Economic Journal, Royal Economic Society, vol. 105(428), pages 22-53, January.
  60. Timothy J. Hatton, 2004. "Seeking asylum in Europe," Economic Policy, CEPR;CES;MSH, vol. 19(38), pages 5-62, 04.
Full references (including those not matched with items on IDEAS)

This item is featured on the following reading lists or Wikipedia pages:

  1. Economic Logic blog

When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2011-10. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmen Arias)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.