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Policies on illegal immigration in a federation

Illegal immigration is a major policy challenge in Europe, in particular in countries on the external border of the EU such as Italy or Spain. However, there are likely to be important e ects on the rest of the EU, too, depending on the policies against illegal immigration in border countries. This paper determines optimal enforcement and amnesty policies on illegal immigration in a federation with border and non-border countries. We show that in the Nash equilibrium with positive enforcement spending in both countries, total enforcement spending is too low to maximize joint welfare. We nd that in this case a side payment can be necessary to achieve the cooperative optimum, depending on the relative size of populations in the two countries.

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File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0909.pdf
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0909.

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Date of creation: May 2009
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Handle: RePEc:vie:viennp:0909
Contact details of provider: Web page: http://www.univie.ac.at/vwl

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  1. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring.
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  7. Maria Concetta Chiuri & Giuseppe De Arcangelis & Angela Maria D’Uggento & Giovanni Ferri, 2007. "FEATURES AND EXPECTATIONS OF ILLEGAL IMMIGRANTS: results of a field survey in Italy," CHILD Working Papers wp01_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  8. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
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  10. Djajic, Slobodan, 1997. "Illegal Immigration and Resource Allocation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(1), pages 97-117, February.
  11. Cohen Goldner, Sarit & Paserman, M. Daniele, 2004. "The Dynamic Impact of Immigration on Natives' Labor Market Outcomes: Evidence from Israel," IZA Discussion Papers 1315, Institute for the Study of Labor (IZA).
  12. Orrenius, Pia M. & Zavodny, Madeline, 2007. "Does immigration affect wages? A look at occupation-level evidence," Labour Economics, Elsevier, vol. 14(5), pages 757-773, October.
  13. Theodore Palivos, 2007. "Welfare effects of illegal immigration," Discussion Paper Series 2007_01, Department of Economics, University of Macedonia, revised Dec 2007.
  14. Giovanni Facchini & Oliver Lorz & Gerald Willmann, 2006. "Asylum seekers in Europe: the warm glow of a hot potato," Journal of Population Economics, Springer, vol. 19(2), pages 411-430, June.
  15. Carter, Thomas J., 1999. "Illegal immigration in an efficiency wage model," Journal of International Economics, Elsevier, vol. 49(2), pages 385-401, December.
  16. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
  17. Wellisch, Dietmar & Wildasin, David E., 1996. "Decentralized income redistribution and immigration," European Economic Review, Elsevier, vol. 40(1), pages 187-217, January.
  18. Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, vol. 15(4), pages 585-604, November.
  19. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
  20. Robert Fenge & Volker Meier, 2006. "Subsidies for Wages and Infrastructure: How to Restrain Undesired Immigration," CESifo Working Paper Series 1741, CESifo Group Munich.
  21. Pia M. Orrenius & Madeline Zavodny, 2004. "What are the consequences of an amnesty for undocumented immigrants?," Working Paper 2004-10, Federal Reserve Bank of Atlanta.
  22. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc.
  23. Karlson, Stephen H. & Katz, Eliakim, 2003. "A positive theory of immigration amnesties," Economics Letters, Elsevier, vol. 78(2), pages 231-239, February.
  24. Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August.
  25. Winegarden, C R & Khor, Lay Boon, 1991. "Undocumented Immigration and Unemployment of U.S. Youth and Minority Workers: Econometric Evidence," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 105-12, February.
  26. Raquel Carrasco & Juan F. Jimeno & Ana Carolina Ortega, 2004. "The Effect Of Immigration On The Employment Opportunities Of Native-Born Workers: Some Evidence For Spain," Economics Working Papers we046122, Universidad Carlos III, Departamento de EconomĂ­a.
  27. Tim Krieger & Steffen Minter, 2007. "Immigration amnesties in the southern EU member states - a challenge for the entire EU?," Working Papers CIE 6, University of Paderborn, CIE Center for International Economics.
  28. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer, vol. 21(3), pages 627-648, July.
  29. Jef Huysmans, 2000. "The European Union and the Securitization of Migration," Journal of Common Market Studies, Wiley Blackwell, vol. 38(5), pages 751-777, December.
  30. Greenwood, Michael J & McDowell, John M, 1986. "The Factor Market Consequences of U.S. Immigration," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1738-72, December.
  31. Chau, Nancy H, 2001. "Strategic Amnesty and Credible Immigration Reform," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 604-34, July.
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