The Welfare Effects of Financing the Internal Enforcement of Illegal Immigration
The present chapter re-examines the Bond and Chen (1987) model on illegal immigration, introducing a government budget constraint (GBC) on the host country’s government. It examines the effects of financing internal enforcement of illegal immigration by the host-country’s government on the welfare of the host (labor-importing) country, the foreign (labor-exporting) country and the world, both in the absence and in the presence of international capital mobility. The aim of this chapter is to determine whether internal enforcement may be a Pareto-improving policy.
KeywordsHost Country Welfare Effect Domestic Firm Domestic Worker Capital Mobility
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