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Tradable immigration quotas

AuthorsFernández-Huertas Moraga, Jesús ; Rapoport, Hillel
Immigration policy
Tradable quotas
Climate change
International public goods
Issue Date20-Jun-2011
PublisherFundación de Estudios de Economía Aplicada
AbstractInternational migration is maybe the single most e¤ective way to alleviate poverty at a global level. When a given host country allows more immigrants in, this creates costs and bene ts for that particular country as well as a positive externality for all those (individuals and governments) who care about world poverty. This implies that the existing international migration regime is ine¢ cient as it fails to internalize such externality. In addition, host countries quite often restrict immigration due to its ap- parently unbearable social and political costs. However these costs are never measured and made comparable across countries. In this paper we rst discuss theoretically how tradable immigration quotas (TIQs) can reveal information on such costs and, once coupled with a matching mechanism taking into account migrants preferences, gener- ate substantial welfare gains for all the parties involved. We then propose two poten- tial applications: a market for the resettlement of international (e.g., climate change) refugees, and an extension of the US diversity lottery to a larger set of host countries and other immigration targets. Both applications are seen as possible precursors to a full implementation of a TIQs system.
DescriptionJEL Classification: F22, F5, H87, I3, K33, 019.-- Trabajo presentado al "XXXV Simposio de la Asociación Española de Economía" celebrado en Bilbao en 2010.
Publisher version (URL)http://www.fedea.es/033_Publicaciones_VerMas.asp?id=942
Appears in Collections:(IAE) Artículos
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