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The (Option-)Value of Overstaying

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  • Poinas, François
  • Méango, Romuald

Abstract

The paper is structured around three main contributions. First, it takes advan-tage of a unique survey on Afghan asylum seekers in Germany to provide novel descriptive insights into asylum seekers’ beliefs about their outcomes and the as-sociated intention to overstay. Second, it estimates asylum seekers’ perceived ex ante returns on overstaying, and option values of regularisation, deportation, and experimentation. Third, it assesses and rejects the cost-effectiveness argument for assisted voluntary return policies. Instead, it estimates a sizeable willingness-to-pay of asylum seekers for investments that would guarantee their regularisation.

Suggested Citation

  • Poinas, François & Méango, Romuald, 2023. "The (Option-)Value of Overstaying," TSE Working Papers 23-1478, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:128601
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    More about this item

    Keywords

    Subjective expectations; Intention to overstay; Asylum seekers; Germany; Afghanistan;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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