Time, Space and Skills in Designing Migration Policy

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: This paper proposes a multi-country model of international migration in which college-educated workers choose their destination country, preferred type of visa, and the optimal duration of stay. Combining these elements into a unified theoretical framework provides a micro-foundation for the multilateral resistance to migration. The proposed theory is applied to investigate the global implications of decreasing the costs of six-year visas for highly skilled professionals in the EU, calibrated as an introduction of H1B visas. This is compared with a policy of reducing income tax for medium-term, college-educated, foreign workers. The two counterfactuals indicate a significant rise in the yearly inflows and total stocks of highly skilled immigrants into the EU. The outcomes of the former policy are driven by a “visa-substitution” effect within the group of current emigrants, while the latter scenario results in an increase in the pool of international migrants. Both policies induce a “destination-substitution” effect—losses of skilled migrants by non-EU states, which is reinforced by a multilateral resistance to migration.

Keywords: migration policy; temporary migration; discrete choice models; H1B visas (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-int, nep-lab and nep-mig
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Related works:
Journal Article: Time, Space and Skill in Designing Migration Policy (2018)
Journal Article: TIME, SPACE, AND SKILLS IN DESIGNING MIGRATION POLICY (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:16-12

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