Optimal Immigration Policy: Permanent, Guest-Worker, or Mode IV?
Immigration continues to be on the forefront of the policy debate on both sides of the Atlantic. A number of reforms of permanent and guest-worker (GW) immigration programs are being considered, and the temporary movement of service providers under Mode IV (GATS) is being negotiated at the Doha Round of the WTO. This paper contributes to the debate by examining these programs in a model where the host country government maximizes its objective function with respect to three policy instruments: the share of migrants’ deferred income payment, the value of the bond employers must post and forfeit if GWs overstay, and the size of the program. Circular migration and illegal GWs’ status regularization are considered. The paper shows that i) the optimal value of the bond is zero, ii) Mode IV is preferable to GW migration; iii) the optimal policy package consists of Mode IV and permanent migration, and iv) incorporating circular migration improves the policy package. Additional policy implications are also provided.
|Date of creation:||Sep 2007|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Grossman, Gene M & Helpman, Elhanan, 1994.
"Protection for Sale,"
American Economic Review,
American Economic Association, vol. 84(4), pages 833-50, September.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- Holzmann, Robert & Munz, Rainer, 2004. "Challenges and opportunities of international migration for the EU, its member states, neighboring countries, and regions : a Policy Note," Social Protection and Labor Policy and Technical Notes 30160, The World Bank.
- Ruhs, Martin & Chang, Ha-Joon, 2004. "The Ethics of Labor Immigration Policy," International Organization, Cambridge University Press, vol. 58(01), pages 69-102, February.
- de Melo, Jaime & Grether, Jean-Marie & Müller, Tobias, 2001.
"The Political Economy of International Migration in a Ricardo-Viner Model,"
CEPR Discussion Papers
2714, C.E.P.R. Discussion Papers.
- Jean-Marie Grether & Jaime de Melo & Tobias Müller, 2015. "The Political Economy of International Migration in a Ricardo–Viner Model," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 17, pages 411-437 World Scientific Publishing Co. Pte. Ltd..
- Jaime MELO DE & Jean Marie GRETHER & Jean Claude MULLER, 2000. "The Political Economy of International Migration in a Ricardo-Viner Model," Working Papers 200021, CERDI.
- Constant, Amelie & Zimmermann, Klaus F, 2007.
"Circular Migration: Counts of Exits and Years Away from the Host Country,"
CEPR Discussion Papers
6438, C.E.P.R. Discussion Papers.
- Amelie Constant & Klaus F. Zimmermann, 2007. "Circular Migration: Counts of Exits and Years away from the Host Country," SOEPpapers on Multidisciplinary Panel Data Research 40, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Constant, Amelie F. & Zimmermann, Klaus F., 2007. "Circular Migration: Counts of Exits and Years Away from the Host Country," IZA Discussion Papers 2999, Institute for the Study of Labor (IZA).
- Amelie Constant & Klaus F. Zimmermann, 2007. "Circular Migration: Counts of Exits and Years away from the Host Country," Discussion Papers of DIW Berlin 718, DIW Berlin, German Institute for Economic Research.
- Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
- Epstein, Gil S & Hillman, Arye L. & Weiss, Avi, 1998.
"Creating Illegal Immigrants,"
CEPR Discussion Papers
1796, C.E.P.R. Discussion Papers.
- Aaditya Mattoo & Antonia Carzaniga, 2003. "Moving People to Deliver Services," World Bank Publications, The World Bank, number 15088, November.
- Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank.
- Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 91-116.
- Schiff, Maurice, 2002. "Love thy neighbor: trade, migration, and social capital," European Journal of Political Economy, Elsevier, vol. 18(1), pages 87-107, March.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3083. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.