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An alternative model of international migration: endogenous two sided borders and optimal legal systems

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  • Inaam Chaabane
  • Damien Gaumont

Abstract

In a 2-country and 3-period OLG model with education, we study the impact on international migration of the two sided characteristics of borders. Individuals must first “leave” their home country before “entering” the destination country. Indeed, each social planner chooses the static welfare optimal level of education, consumption, labor and capital. A unique migration flow is compatible with the market steady-state equilibrium and the maximizing social welfare solution. Difference in education generates differences in steady-state capital per capita. Consequently, both price differentials and incentives for illegal migration exist. Application to real world cases is provided. JEL ClassificationK37, D91, F22 Copyright Chaabane and Gaumont; licensee Springer. 2015

Suggested Citation

  • Inaam Chaabane & Damien Gaumont, 2015. "An alternative model of international migration: endogenous two sided borders and optimal legal systems," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    • Handle: RePEc:spr:izamig:v:4:y:2015:i:1:p:1-23:10.1186/s40176-014-0028-1
    DOI: 10.1186/s40176-014-0028-1
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    References listed on IDEAS

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    More about this item

    Keywords

    International migration; Overlapping generations models; Immigration law and legal systems;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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