Reference : Sustainable Migration Policies
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Business & economic sciences : International economics
Sustainable Migration Policies
Picard, Pierre M. mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Worrall, Tim [> >]
The University of Manchester
The School of Economics Discussion Paper Series
[en] Migration ; Self-enforcing Mechanism ; Repeated Games
[en] 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.
Researchers ; Students

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