IDEAS home Printed from https://ideas.repec.org/p/iza/izapps/pp151.html
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL: https://docs.iza.org/pp151.pdf
    Download Restriction: no
    ---><---

    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.
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Irene Alfarone & Ugo Merlone, 2024. "Should I stay or should I go: A dynamical model of musicians’ agglomeration and migration," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 97-116, February.
    2. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    3. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    4. Clemens, Michael A. & Pritchett, Lant, 2019. "The new economic case for migration restrictions: An assessment," Journal of Development Economics, Elsevier, vol. 138(C), pages 153-164.
    5. Partha Mukhopadhyay & Marie‐Hélène Zérah & Eric Denis, 2020. "Subaltern Urbanization: Indian Insights for Urban Theory," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 44(4), pages 582-598, July.
    6. Dieter Pennerstorfer & Nora Schindler & Christoph Weiss & Biliana Yontcheva, 2020. "Income Inequality and Product Variety: Empirical Evidence," Economics working papers 2020-17, Department of Economics, Johannes Kepler University Linz, Austria.
    7. Melissa Haller & David L. Rigby, 2020. "The geographic evolution of optics technologies in the United States, 1976–2010," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1539-1559, December.
    8. Corral, Paul & Radchenko, Natalia, 2017. "What’s So Spatial about Diversification in Nigeria?," World Development, Elsevier, vol. 95(C), pages 231-253.
    9. Sari Pekkala Kerr & William R. Kerr, 2019. "Immigrant Networking and Collaboration: Survey Evidence from CIC," NBER Chapters, in: The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship, pages 173-205, National Bureau of Economic Research, Inc.
    10. Pierre-Louis Vezina, 2017. "Resource discoveries and FDI bonanzas: An illustration from Mozambique," OxCarre Working Papers 199, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    11. Llanos Paredes, Pedro, 2023. "The effect of applied research institutes on invention: evidence from the Fraunhofer centres in Europe," LSE Research Online Documents on Economics 120473, London School of Economics and Political Science, LSE Library.
    12. Llamosas-Rosas Irving & Fonseca Felipe J., 2018. "Determinants of FDI Attraction in the Manufacturing Sector in Mexico, 1999-2015," Working Papers 2018-07, Banco de México.
    13. repec:ial:wpaper:7/2013 is not listed on IDEAS
    14. Abebe, Girum & McMillan, Margaret & Serafinelli, Michel, 2022. "Foreign direct investment and knowledge diffusion in poor locations," Journal of Development Economics, Elsevier, vol. 158(C).
    15. Felipe J. Fonseca & Irving Llamosas-Rosas, 2019. "Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 265-284, April.
    16. Daniel Ershov, 2018. "Competing with Superstars in the Mobile App Market," Working Papers 18-02, NET Institute.
    17. Pekkala Kerr, Sari & Kerr, William, 2020. "Immigrant entrepreneurship in America: Evidence from the survey of business owners 2007 & 2012," Research Policy, Elsevier, vol. 49(3).
    18. Sato, Yasuhiro & Zenou, Yves, 2015. "How urbanization affect employment and social interactions," European Economic Review, Elsevier, vol. 75(C), pages 131-155.
    19. Løken, Katrine & Bütikofer, Aline & Willén, Alexander, 2020. "Building Bridges and Widening Gaps: Wage Gains and Equity Concerns of Labor Market Expansions," CEPR Discussion Papers 14287, C.E.P.R. Discussion Papers.
    20. Alexia Lochmann, 2022. "Diagnosing Drivers of Spatial Exclusion: Places, People, and Policies in South Africa’s Former Homelands," CID Working Papers 140a, Center for International Development at Harvard University.
    21. Mastrosavvas, Andreas, 2024. "Social Networks and Brexit: Evidence from a Trade Shock," Regional Science and Urban Economics, Elsevier, vol. 108(C).

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izapps:pp151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.