Congestion and optimal immigration policy

Chao, Chi-Chur, Hazari, Bharat R. and Laffargue, Jean-Pierre 2013, Congestion and optimal immigration policy, Review of development economics, vol. 17, no. 1, pp. 88-104, doi: 10.1111/rode.12017.

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Title Congestion and optimal immigration policy
Author(s) Chao, Chi-ChurORCID iD for Chao, Chi-Chur
Hazari, Bharat R.
Laffargue, Jean-Pierre
Journal name Review of development economics
Volume number 17
Issue number 1
Start page 88
End page 104
Total pages 17
Publisher Wiley-Blackwell Publishing Ltd.
Place of publication West Sussex, England
Publication date 2013-02
ISSN 1363-6669
Keyword(s) immigration
Summary This paper presents a model to explain the stylized fact that many countries have a low ratio of migrants in their population while some countries have a high ratio of migrants. Immigration improves the income of the domestic residents, but migrants also increase the congestion of public services. If migrants are unskilled and therefore pay low taxes, and the government does not limit access to these services, then the welfare of the domestic residents decreases with the number of migrants. Visa auctions can lower the cost of immigration control and substitute legal migrants for illegal migrants. If the government decides to limit the access of migrants to public services, immigration control becomes unnecessary and the optimal number of migrants can be very large.
Language eng
DOI 10.1111/rode.12017
Field of Research 140207 Financial Economics
Socio Economic Objective 900301 Economic Issues in Tourism
HERDC Research category C1 Refereed article in a scholarly journal
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Document type: Journal Article
Collections: Faculty of Business and Law
Deakin Business School
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