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Sustainable Migration Policies

Author

Listed:
  • Pierre M. Picard

    (University of Luxembourg)

  • Tim Worrall

    (University of Manchester)

Abstract

This paper considers whether countries might mutually agree a policy of allowing free movement of workers. For the countries to agree, the short run costs must outweighed by the long term benefits that result from better labor market flexibility and income smoothing. We show that such policies are less likely to be adopted for less risk averse workers and for countries that trade more. More surprisingly we find that some congestion costs can help. This reverses the conventional wisdom that congestion costs tend to inhibit free migration policies.

Suggested Citation

  • Pierre M. Picard & Tim Worrall, 2010. "Sustainable Migration Policies," DEM Discussion Paper Series 10-12, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:10-12
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    References listed on IDEAS

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    More about this item

    Keywords

    Migration; Self-enforcing Mechanism; Repeated Games;
    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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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