Economics and Finance Faculty Publications and Presentations

Document Type

Article

Publication Date

1-2025

Abstract

This paper constructs a model for the study of optimal immigration from the perspective of natives. They have preferences over redistributive transfers, a public good subject to congestion, and over the level of family-based migration. Border enforcement is costly. The model derives conditions for an optimal immigration policy, which balances skill-based against family-based migration, equalizes the fiscal opportunity cost of unauthorized immigration with the marginal cost of enforcement, and balances the effects on transfers against the implied congestion effects. A parameterized version of the model studies the 1994–2008 period and finds legislation projects on immigration consistent with the model's predictions.

Comments

Original published version available at

https://onlinelibrary.wiley.com/share/S6T2THTFUCCPCBKJZ6TD?target=10.1111/ecin.13260

Publication Title

Economic Inquiry

DOI

https://doi.org/10.1111/ecin.13260

Included in

Economics Commons

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