Essays on the Transferability of Migration Licenses
The first chapter, Trasferability of Migration Licenses and the Distribution of Potential Rents,compares the effects of migration restrictions using licenses which are freelytraded to those that occur when licenses are allocated tofirms who are not permitted to trade them. Both domestic and migrant labor markets are assumed to becompetitive. There is reason to expect that a policy ofmaking licenses non-transferable will not only affect production efficiency, but also toallow producers to capture more of the potential migration rents. Applications tomigration policies in the Gulf Cooperation Council (GCC) countries are discussed.The second chapter, Monopsony and Non-Transferable Migration Licenses,considers the case where firms have market power in the licensed migrant labor market but not in thedomestic labor market. When only one firm is allocated migration licenses they will onlyneed to offer a wage per effective unit of migrant labor that is slightly above the wagemigrants are offered in their home country to induce migration. Here all license rents arereceived by the monopsonist. If two firms are allocated migration licenses, withfirms competing in wages, profit functions are discontinuous and no pure strategy Nashequilibrium exists. There does exist a mixed strategy equilibrium, where the firm allocatedmore licenses offers the lower average wage to migrant workers. If firms movesequentially, the subgame perfect equilibrium is similar, where the firm with morelicenses always offers a lower wage to migrant workers regardless of the order of play.The wage offered by the firm with fewer licenses depends on the order of play,where it strictly prefers the firm with more licenses to move first.
Year of publication: |
2001-08-11
|
---|---|
Authors: | Bivins, Laura |
Other Persons: | James Shorlte (contributor) ; Kala Krishna (contributor) ; Eric W. Bond (contributor) ; Robert C. Marshall (contributor) |
Publisher: |
Penn State |
Saved in:
freely available
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