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Undocumented migrants in debt

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  • Djajić, Slobodan
  • Vinogradova, Alexandra

Abstract

Numerous studies suggest that illegal immigration in the form of bonded labor is becoming an increasingly important phenomenon. This paper develops a model of optimizing behavior of undocumented immigrants who are employed in the host country as bonded laborers while repaying their debts to human smugglers. The analysis relates the optimal duration of the repayment period and the migrant's consumption path to the stock of debt, the rate of interest charged by the smuggler and the levels of the bonded and free-market wages in the destination country. This provides a framework for examining the effectiveness of immigration controls, internal enforcement measures and deportation policies of the host country in deterring debt-bonded migration.

Suggested Citation

  • Djajić, Slobodan & Vinogradova, Alexandra, 2013. "Undocumented migrants in debt," Labour Economics, Elsevier, vol. 21(C), pages 15-24.
    • Handle: RePEc:eee:labeco:v:21:y:2013:i:c:p:15-24
    DOI: 10.1016/j.labeco.2012.12.004
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Emmanuelle Auriol & Alice Mesnard, 2016. "Sale of Visas: a Smuggler's Final Song?," Economica, London School of Economics and Political Science, vol. 83(332), pages 646-678, October.
    2. Slobodan Djajić & Michael S. Michael, 2013. "Guest worker programs: A theoretical analysis of welfare of the host and source countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(3), pages 454-475, April.
    3. Djajić, Slobodan & Vinogradova, Alexandra, 2014. "Liquidity-constrained migrants," Journal of International Economics, Elsevier, vol. 93(1), pages 210-224.
    4. Djajić, Slobodan, 2014. "Asylum seeking and irregular migration," International Review of Law and Economics, Elsevier, vol. 39(C), pages 83-95.
    5. Slobodan Djajic & Alice Mesnard, 2013. "Guest Workers in the Underground Economy," RF Berlin - CReAM Discussion Paper Series 1324, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    6. Slobodan Djajić, 2015. "Financial Support from the Family Network and Illegal Immigration," Review of International Economics, Wiley Blackwell, vol. 23(2), pages 387-403, May.
    7. repec:ces:ifodic:v:12:y:2014:i:2:p:19116207 is not listed on IDEAS
    8. Slobodan Djajić & Michael S. Michael, 2014. "Controlling Illegal Immigration: On the Scope for Cooperation with a Transit Country," Review of International Economics, Wiley Blackwell, vol. 22(4), pages 808-824, September.
    9. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    10. Slobodan Djajić, 2017. "Transit migration," Review of International Economics, Wiley Blackwell, vol. 25(5), pages 1017-1045, November.
    11. Alexandra Vinogradova, 2014. "Legal and illegal immigrants: an analysis of optimal saving behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 201-224, January.
    12. Slobodan Djajic, 2014. "Guest-Worker Programs," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 16-19, July.
    13. Slobodan Djajić & Alice Mesnard, 2013. "Guest Workers in the Underground Economy," IHEID Working Papers 15-2013, Economics Section, The Graduate Institute of International Studies.
    14. Djajic, Slobodan & Mesnard, Alice, 2014. "Guest Workers in the Underground Economy," CEPR Discussion Papers 10074, C.E.P.R. Discussion Papers.
    15. Alexandra Vinogradova, 2016. "Illegal immigration, deportation policy, and the optimal timing of return," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 781-816, July.
    16. Olivier CHARLOT & Claire NAIDITCH & Radu VRANCEANU, 2022. "Migrant Smuggling to Europe: a Matching Model," THEMA Working Papers 2022-05, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    17. Slobodan Djajić & Alexandra Vinogradova, 2019. "Immigration Policies and the Choice between Documented and Undocumented Migration," Economica, London School of Economics and Political Science, vol. 86(341), pages 201-228, January.
    18. Slobodan Djajić, 2013. "Some Essentials Of A Workable Guest‐Worker Program," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 739-766, May.
    19. Djajic, S. & Mesnard, A., 2013. "Guest Workers in the Underground Economy," Working Papers 13/05, Department of Economics, City University London.

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    More about this item

    Keywords

    Illegal immigration; Bonded labor; Human smuggling;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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