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A Market for Work Permits

Author

Listed:
  • Michael Lokshin
  • Martin Ravallion

Abstract

It will be politically difficult to liberalize international migration without protecting host-country workers. The paper explores the scope for efficiently managing migration using a competitive market for work permits. Host-county workers would have the option of renting out their citizenship work permit for a period of their choice, while foreigners purchase time-bound work permits. Aggregate labor supply need not rise in the host country. However, total output would rise and workers would see enhanced social protection. Simulations for the US and Mexico suggest that the new market would attract many skilled migrants, boosting GDP and reducing poverty in the US.

Suggested Citation

  • Michael Lokshin & Martin Ravallion, 2019. "A Market for Work Permits," NBER Working Papers 26590, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26590
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    References listed on IDEAS

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    1. Eric WEINSTEIN, 2002. "Migration for the benefit of all: Towards a new paradigm for economic immigration," International Labour Review, International Labour Organization, vol. 141(3), pages 225-252, September.
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    2. Auriol, Emmanuelle & Mesnard, Alice & Perrault, Tiffanie, 2023. "Temporary foreign work permits: Honing the tools to defeat human smuggling," European Economic Review, Elsevier, vol. 160(C).
    3. Quy-Toan Do & Michael Lokshin & Martin Ravallion, 2025. "Migrants as Social Protection? Simulations of a Market for Work Permits," The World Bank Economic Review, World Bank, vol. 39(4), pages 893-906.

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    More about this item

    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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