Arbeitspapier

Tradable immigration quotas

International migration is maybe the single most effective way to alleviate poverty at a global level. When a given host country allows more immigrants in, this creates costs and benefits 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 inefficient as it fails to internalize such externality. In addition, host countries quite often restrict immigration due to its apparently unbearable social and political costs. However these costs are never measured and made comparable across countries. In this paper we first 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, generate substantial welfare gains for all the parties involved. We then propose two potential 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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5765

Classification
Wirtschaft
International Migration
International Fiscal Issues; International Public Goods
International Law
International Linkages to Development; Role of International Organizations
Subject
immigration
immigration policy
tradable quotas
refugees
climate change
international public goods

Event
Geistige Schöpfung
(who)
Fernández-Huertas Moraga, Jesús
Rapoport, Hillel
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2011

Handle
URN
urn:nbn:de:101:1-20110621249
Last update
10.03.2025, 11:41 AM CET

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Object type

  • Arbeitspapier

Associated

  • Fernández-Huertas Moraga, Jesús
  • Rapoport, Hillel
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2011

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