Legal Migration and Illegal Migration: The Effectiveness of Qualitative and Quantitative Restriction Policies

Abstract

There are many theoretical studies on the economic welfare of host countries that have to deal with the problems of immigration on an international level. Most of these studies have concluded that immigration is beneficial to the host country. Berry and Soligo (1969), Rivera-Batiz (1982), Quibria (1989), Wong (1995), and Kondoh (1999) are typical of these, but it should be noted that these authors considered workers of similar ability and skill level only. Realistically, potential immigrants have different levels of ability and skills, and the government of the host country is likely to be selective in granting entry and work permits to foreign workers. In reality, developed countries accept only those skilled workers whose abilities they need. For less qualified and unskilled workers, the possibility of legal entry is more limited. The theoretical analyses usually failed to consider one major reason why developed countries are so reluctant to accept immigrants, to minimize possible negative externalities associated with large inflow of foreign workers. Qualitative restrictions are therefore usually adopted, not only to gain useful skilled workers for the workforce but also to prevent a flood of “undesirable,” disgruntled immigrants who might bring problems with them.

This paper was originally published by the Journal of International Trade and Economic Development as an article in its Vol. 9 (2000) issue.

Appendix

Derivation of Table 3.1: Differentiating (3.12) and (3.13), we obtain

$$ \begin{aligned}[b] \left[\begin{array}{cc}\hfill {X}_3\hfill & \hfill {X}_4\hfill \\ {}\hfill {Y}_3\hfill & \hfill {Y}_4\hfill \end{array}\right]\left[\begin{array}{c}\hfill d{i}^{*}\hfill \\ {}\hfill d{i}^{**}\hfill \end{array}\right]&=\left[\begin{array}{c}\hfill -{X}_1\hfill \\ {}\hfill -{Y}_1\hfill \end{array}\right]d{K}_e+\left[\begin{array}{c}\hfill -{X}_2\hfill \\ {}\hfill -{Y}_2\hfill \end{array}\right]d{K}_m+\left[\begin{array}{c}\hfill -{X}_5\hfill \\ {}\hfill -{Y}_5\hfill \end{array}\right]dp\\ &\quad +\left[\begin{array}{c}\hfill -{X}_6\hfill \\ {}\hfill -{Y}_6\hfill \end{array}\right]d\theta +\left[\begin{array}{c}\hfill 1\hfill \\ {}\hfill 1\hfill \end{array}\right]d\overline{\mu}.\end{aligned} $$

(A3.1)

The determinant of LHS matrix of (A3.1), ∆, is

$$ \Delta ={X}_3{Y}_4-{X}_4{Y}_3<0. $$

Derivation of Table 3.2 and 3.3: Differentiating (3.13′), (3.19), and (3.14′), we obtain

$$ \begin{aligned}[b] \left[\begin{array}{ccc}\hfill {\tilde{Y}}_3\hfill & \hfill {\tilde{Y}}_4\hfill & \hfill 0\hfill \\ {}\hfill {Z}_3\hfill & \hfill {Z}_4\hfill & \hfill {Z}_8\hfill \\ {}\hfill 1\hfill & \hfill 0\hfill & \hfill -{\varPsi}_1\hfill \end{array}\right]\left[\begin{array}{c}\hfill d\widehat{i}\hfill \\ {}\hfill d{i}^{**}\hfill \\ {}\hfill d\widehat{\tau}\hfill \end{array}\right]&=\left[\begin{array}{c}\hfill -{\tilde{Y}}_1\hfill \\ {}\hfill -{Z}_1\hfill \\ {}\hfill 0\hfill \end{array}\right]d{K}_e+\left[\begin{array}{c}\hfill -{\tilde{Y}}_2\hfill \\ {}\hfill -{Z}_2\hfill \\ {}\hfill 0\hfill \end{array}\right]d{K}_m+\left[\begin{array}{c}\hfill -{\tilde{Y}}_5\hfill \\ {}\hfill -{Z}_5\hfill \\ {}\hfill 0\hfill \end{array}\right]dp\\ &\quad +\left[\begin{array}{c}\hfill -{\tilde{Y}}_6\hfill \\ {}\hfill 0\hfill \\ {}\hfill 0\hfill \end{array}\right]d\theta +\left[\begin{array}{c}\hfill -{\tilde{Y}}_7\hfill \\ {}\hfill -{Z}_6\hfill \\ {}\hfill 0\hfill \end{array}\right]d\overline{\mu}+\left[\begin{array}{c}\hfill -{\tilde{Y}}_8\hfill \\ {}\hfill -{Z}_7\hfill \\ {}\hfill {\varPsi}_2\hfill \end{array}\right]d\overline{Q}.\end{aligned} $$

(A3.2)

The determinant of LHS matrix of (A3.2) in sub-case $i\left(i=1,2\right),{\Omega}_i$ is

$$ {\Omega}_1={\tilde{Y}}_4\left({Z}_8+{\Psi}_1{Z}_3\right)-{\Psi}_1{\tilde{Y}}_3{Z}_4<0, $$

$$ {\Omega}_2={\tilde{Y}}_4\left({Z}_8+{\Psi}_1{Z}_3\right)-{\Psi}_1{\tilde{Y}}_3{Z}_4>0. $$

To obtain the positive sign of Ω₂, we must remember that

$$ {\left.\frac{d\tau }{di}\right|}_{\overline{Q}\overline{Q}}={\Psi}_1<{\left.\frac{d\tau }{di}\right|}_{BC}=-\frac{Z_8}{Z_3}<0. $$