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Time, Space and Skills in Designing Migration Policy

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  • Michal Burzynski

    () (CREA, Université du Luxembourg)

Abstract

This paper proposes a multi-country model of international migration in which college-educated workers choose their destination country, preferred type of visa, and the optimal duration of stay. Combining these elements into a unified theoretical framework provides a micro-foundation for the multilateral resistance to migration. The proposed theory is applied to investigate the global implications of decreasing the costs of six-year visas for highly skilled professionals in the EU, calibrated as an introduction of H1B visas. This is compared with a policy of reducing income tax for medium-term, college-educated, foreign workers. The two counterfactuals indicate a significant rise in the yearly inflows and total stocks of highly skilled immigrants into the EU. The outcomes of the former policy are driven by a “visa-substitution” effect within the group of current emigrants, while the latter scenario results in an increase in the pool of international migrants. Both policies induce a “destination-substitution” effect—losses of skilled migrants by non-EU states, which is reinforced by a multilateral resistance to migration.

Suggested Citation

  • Michal Burzynski, 2016. "Time, Space and Skills in Designing Migration Policy," CREA Discussion Paper Series 16-12, Center for Research in Economic Analysis, University of Luxembourg.
  • Handle: RePEc:luc:wpaper:16-12
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    More about this item

    Keywords

    migration policy; temporary migration; discrete choice models; H1B visas;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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