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An Auctions Approach to Immigration Policy

Author

Listed:
  • Orrenius, Pia M.

    (Federal Reserve Bank of Dallas)

  • Zavodny, Madeline

    (University of North Florida)

Abstract

Immigration reform is once again on Washington's policy agenda. Serious attention is being given to policies that would place more emphasis on merit than on family ties, which are favored by much of the current US immigration system. One way to determine merit is a point-based system. This paper argues that auctioning off visas would be preferable to a point-based system. Auctions would promote economic growth, increase government revenue, and lead to a more efficient allocation of visas while reducing discretionary decision making by government officials. This paper outlines several proposals for how to implement visa auctions that could serve as a starting point for designing a better immigration policy. We recommend replacing the current system of employment-based temporary and permanent visas with an employer-centered auction in order to increase the economic gains from immigration.

Suggested Citation

  • Orrenius, Pia M. & Zavodny, Madeline, 2020. "An Auctions Approach to Immigration Policy," IZA Policy Papers 151, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp151
    as

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    File URL: https://docs.iza.org/pp151.pdf
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    References listed on IDEAS

    as
    1. Edward L. Glaeser, 2010. "Introduction to "Agglomeration Economics"," NBER Chapters, in: Agglomeration Economics, pages 1-14, National Bureau of Economic Research, Inc.
    2. Madeline Zavodny & Pia M. Orrenius, 2010. "Beside the Golden Door: U.S. Immigration Reform in a New Era of Globalization," Books, American Enterprise Institute, number 6408, September.
    3. Edward L. Glaeser, 2010. "Agglomeration Economics," NBER Books, National Bureau of Economic Research, Inc, number glae08-1, June.
    4. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    5. repec:aei:rpbook:24906 is not listed on IDEAS
    6. Madeline Zavodny & Pia M. Orrenius, 2019. "The US needs workers, not a wall," AEI Economic Perspectives, American Enterprise Institute, March.
    7. John Haltiwanger & Erik Hurst & Javier Miranda & Antoinette Schoar, 2017. "Measuring Entrepreneurial Businesses: Current Knowledge and Challenges," NBER Books, National Bureau of Economic Research, Inc, number halt14-1, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    immigration; foreign workers; visa auction;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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