EconPapers    
Economics at your fingertips  
 

An Incentive Mechanism to Break the Low-skill Immigration Deadlock

David de la Croix () and Frédéric Docquier ()

Review of Economic Dynamics, 2015, vol. 18, issue 3, 593-618

Abstract: The international mobility of low-skilled workers is constrained by immigration restrictions set by rich countries, preventing extreme poverty from declining in the developing world. Under aversion to extreme poverty, one country's immigration policy affects the welfare of other countries: "nationalist" political decisions are subject to a prisoner's dilemma. Taking advantage of efficiency gains from coordination, we propose an alternative allocation of labor, which minimizes extreme poverty while keeping rich countries as well off as in the nationalist situation. This allocation can be decentralized through international taxes and subsidies. Numerical simulations show that the role of aversion to poverty is negligible when considering each country separately, but becomes important for the design of a coordinated migration policy. (Copyright: Elsevier)

Keywords: Public good; Inequality aversion; Immigration policy (search for similar items in EconPapers)
JEL-codes: F22 F55 D58 D6 D7 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1016/j.red.2014.09.004
Access to full texts is restricted to ScienceDirect subscribers and institutional members. See http://www.sciencedirect.com/ for details.

Related works:
Software Item: Code and data files for "An Incentive Mechanism to Break the Low-skill Immigration Deadlock" (2015) Downloads
Working Paper: An incentive mechanism to break the low-skill immigration deadlock (2014)
Working Paper: An Incentive Mechanism to Break the Low-skill Immigration Deadlock (2010) Downloads
Working Paper: An incentive mechanism to break the low-skill immigration deadlock (2009) Downloads
Working Paper: An Incentive Mechanism to Break the Low-skill Immigration Deadlock (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:issued:12-64

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1016/j.red.2014.09.004

Access Statistics for this article

Review of Economic Dynamics is currently edited by Jonathan Heathcote and Vincenzo Quadrini

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-06-15
Handle: RePEc:red:issued:12-64