Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

No 15-2007: Does Coordination of Immigration Policies among Destination Countries Increase Immigration?

Jan Rose Skaksen, Nikolaj Malchow-Møller and Claus Aastrup Jensen
Additional contact information
Jan Rose Skaksen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Nikolaj Malchow-Møller: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Claus Aastrup Jensen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

Abstract: We set up a theoretical model to analyze the implications of coordination of immigration policies among destination countries. The model contains two types of spill-overs between destination countries: A terms of trade externality and a welfare policy externality. We show that while coordination unambiguously increases welfare of the destination countries, the effects on the level of immigration and on the income distribution of natives are ambiguous. Thus, coordination among destination countries does not necessarily solve the global coordination problem of inoptimally low levels of migration. Coordination, Externalities, Immigration Policy, Spill-overs, Terms of Trade, Welfare.

Keywords: na

JEL-codes: G10

31 pages, January 1, 2007

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