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Guest Workers: Adequate Incentives for Voluntary Return

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Abstract

A guest-worker program can be a very flexible and convenient way of meeting labor shortages in a host country, assuming that the migrants obey the rules. This paper investigates the conditions under which guest workers have sufficient incentives for voluntary return to their country of origin when their work permits expire. The analysis is conducted in the context of a lenient enforcement regime that avoids deportations of undocumented aliens. It relies instead on eligibility criteria and pricing instruments, such as partial withholding of salary and an exit tax for those who overstay, to provide adequate incentives for voluntary return at the end of the contract period.

Suggested Citation

  • Slobodan Djajić & Alexandra Vinogradova & Alexandra Vinogradova, 2013. "Guest Workers: Adequate Incentives for Voluntary Return," IHEID Working Papers 13-2013, Economics Section, The Graduate Institute of International Studies.
    • Handle: RePEc:gii:giihei:heidwp13-2013
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    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIDWP13-2013.pdf
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    Cited by:

    1. Slobodan Djajic, 2014. "Guest-Worker Programs," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(2), pages 16-19, 07.
    2. repec:ces:ifodic:v:12:y:2014:i:2:p:19116207 is not listed on IDEAS
    3. 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.

    More about this item

    Keywords

    Temporary migration; overstaying; voluntary return; guest workers;
    All these keywords.

    JEL classification:

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

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