Abstract

CASADO FRANCISCO, Montserrat; MOLINA SANCHEZ, Luis  and  OYARZUN DE LA IGLESIA, Javier. The Economic Analysis of the International Migratory Movements: New Proposals of Regulation. Inv. Econ [online]. 2006, vol.65, n.257, pp.181-210. ISSN 0185-1667.

This paper examines the main consequences of migrant flows on the labour market and welfare of host countries, using a relatively simple neoclassical model. Paper points out the loss of efficiency resulted from controlling inmigrant flows via a quota, an instrument that is being applied widely in host countries, especially in those, like Spain, that in a few years changed from being net issuers to net receivers of workers.

To avoid the loss of efficiency, income and welfare derived from the control of inmigrant flows using a quota, this paper proposes an intermediate instrument between nowadays regulation and the free movement of labour (which, on the other hand, leads to the optimal result from an economic point of view). This instrument is a tax or a payment to be made for the use of non native labour. This tax allows to protect from external competence sustitutive domestic labour with less welfare and efficiency losses. In other words, the aim of this instrument would be to express in tariff terms the implicit protection of domestic labour contained in a quota. Finally, this tax has also other advantages: more transparency than the quota; and the possibility of multilateral or bilateral agreements to reduce this sort of tariff on labour services, like those reached for manufactures and services in the World Trade Organization (WTO).

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