Illegal Migration, Unemployment and Welfare
In the previous chapter we examined the consequences of legal migration and its spillover effects in a model of multilateral trade. It was established that in models of multilateral trade with both factor and goods mobility, migration policies of one country affect important economic variables in other countries. Hence, in a globalized world, policy decisions cannot be made in isolation. This chapter changes the above perspective from two points of view. First, both legal and illegal migration are considered. Illegal migrants are defined as those who do not possess a valid visa in the country in which they are working or seeking work. Second, both types of migration are examined from the point of view of national welfare with no spillover effects.
KeywordsMinimum Wage Skilled Labour Unskilled Worker Unskilled Labour Multilateral Trade
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- 1.Similar issues in trade theoretic context with only legal migration have been examined by several authors. See, for example, Altonji and Card (1991), Kuhn and Wooton (1991), Dj aj ic (1986), (1993).Google Scholar
- 2.Such beliefs exist in several countries, for example, in Australia. It should be noted here that Australia mainly receives legal migrants.Google Scholar
- 3.This distinction was originally drawn by Bhagwati (1979).Google Scholar