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Can market mechanisms solve the refugee crisis?

Author

Listed:
  • Jesús Fernández-Huertas Moraga

    (Universidad Carlos III de Madrid, and IAE (CSIC), Spain, and IZA, Germany)

  • Martin Hagen

    (CUNEF Universidad, Spain)

Abstract

Ever since the major inflow of refugees (the “refugee crisis”) in 2015 and 2016, there has been heated debate about the appropriate distribution of refugees in the EU. Current policies revolve around mandatory quotas, which disregard the preferences of EU members and refugees alike. This problem can be addressed with two market mechanisms. First, tradable quotas minimize the cost of asylum provision for host countries. Second, a matching system gives refugees more discretion over where they are sheltered. While this proposal is theoretically appealing, it has yet to be tested in practice.

Suggested Citation

  • Jesús Fernández-Huertas Moraga & Martin Hagen, 2021. "Can market mechanisms solve the refugee crisis?," IZA World of Labor, Institute of Labor Economics (IZA), pages 244-244, October.
    • Handle: RePEc:iza:izawol:journl:2021:n:244
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    References listed on IDEAS

    as
    1. Fernández-Huertas Moraga, Jesús & Rapoport, Hillel, 2014. "Tradable immigration quotas," Journal of Public Economics, Elsevier, vol. 115(C), pages 94-108.
    2. Jesús Fernández-Huertas Moraga & Hillel Rapoport, 2015. "Tradable Refugee-admission Quotas and EU Asylum Policy," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 638-672.
    3. Timothy J. Hatton, 2015. "Asylum Policy in the EU: the Case for Deeper Integration," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 605-637.
    4. Jesús Fernández-Huertas Moraga & Hillel Rapoport, 2015. "Tradable Refugee-admission Quotas (TRAQs), the Syrian Crisis and the new European Agenda on Migration," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-13, December.
    5. Robert N. Stavins, 2011. "The Problem of the Commons: Still Unsettled after 100 Years," American Economic Review, American Economic Association, vol. 101(1), pages 81-108, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Petros Xepapadeas & Ioannis Mourtos, 2022. "Refugee allocation mechanisms: theory and applications for the European Union," Operational Research, Springer, vol. 22(4), pages 4557-4584, September.

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    More about this item

    Keywords

    international migration; refugees; EU asylum policy; tradable quotas; matching; public goods;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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