Does coordination of immigration policies among destination countries increase immigration?

Abstract

We set up a theoretical model to analyze the implications of coordination of immigration policies among destination countries. The model contains two types of spill-overs between destination countries: A terms of trade externality and a welfare policy externality. We show that while coordination unambiguously increases welfare of the destination countries, the effects on the level of immigration and on the income distribution of natives are ambiguous. Thus, coordination among destination countries does not necessarily solve the global coordination problem of inoptimally low levels of migration.

Guest worker programs: A theoretical analysis of welfare of the host and source countries*

“…Winters et al (2003) discuss issues related to liberalizing Mode IV, while Hatton (2007) raises the question of whether the potential gains from international migration could be realized through international cooperation along the lines similar to what the WTO has done for trade. Jensen et al (2007) examine the implications of immigrationpolicy coordination among host countries in a model where immigrants are heterogeneous with respect to their performance in the labor market.…”

Temporary Migration Policies and Welfare of the Host and Source Countries: A Game-Theoretic Approach

“…Winters et al (2003) discuss issues related to liberalizing Mode IV, while Hatton (2007) raises the question of whether the potential gains from international migration could be realized through international cooperation along the lines similar to what the WTO has done for trade. Jensen et al (2007) examine the implications of immigrationpolicy coordination among host countries in a model where immigrants are heterogeneous In order to keep the analysis simple and tractable, the focus of our model is limited to several key aspects of guest-worker migration. One of these is the problem of ensuring that the guest-workers return to their country of origin at the moment their work permit expires.…”