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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

    as
    1. Fan, C. Simon & Stark, Oded, 2007. "International migration and "educated unemployment"," Journal of Development Economics, Elsevier, vol. 83(1), pages 76-87, May.
    2. 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.
    3. Ravallion, Martin & Chen, Shaohua, 2015. "Benefit incidence with incentive effects, measurement errors and latent heterogeneity: A case study for China," Journal of Public Economics, Elsevier, vol. 128(C), pages 124-132.
    4. Martin Ravallion & Dominique van de Walle, 2008. "Land in Transition : Reform and Poverty in Rural Vietnam," World Bank Publications, The World Bank, number 6433.
    5. Richard B. Freeman, 2006. "People Flows in Globalization," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 145-170, Spring.
    6. Martin Ruhs, 2013. "The Price of Rights: Regulating International Labor Migration," Economics Books, Princeton University Press, edition 1, number 10140.
    7. Rinku Murgai & Martin Ravallion & Dominique van de Walle, 2016. "Is Workfare Cost-effective against Poverty in a Poor Labor-Surplus Economy?," World Bank Economic Review, World Bank Group, vol. 30(3), pages 413-445.
    8. Michael Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk? - Working Paper 264," Working Papers 264, Center for Global Development.
    9. Christian Dustmann & Ian Preston, 2019. "Free Movement, Open Borders and the Global Gains from Labor Mobility," CReAM Discussion Paper Series 1904, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    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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