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Can market mechanisms solve the refugee crisis?

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  • Jesús Fernández-Huertas Moraga

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

Abstract

The unequal distribution of refugees across countries could unravel the international refugee protection system or, in the case of the EU, hinder a common policy response to refugee crises. A way to distribute refugees efficiently, while respecting their rights, is to combine two market mechanisms. First, a market for tradable refugee admission quotas that allows refugees to be established wherever it is less costly to do so. Second, a matching system that links refugees to their preferred destinations, and host countries to their preferred types of refugees. The proposal is efficient but has yet to be tested in practice.

Suggested Citation

  • Jesús Fernández-Huertas Moraga, 2016. "Can market mechanisms solve the refugee crisis?," IZA World of Labor, Institute of Labor Economics (IZA), pages 244-244, March.
    • Handle: RePEc:iza:izawol:journl:y:2016: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.
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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; tradable quotas; matching; public goods;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • 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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