The New New Economics of Labor Migration: Migrants, Host Countries and Endogenous Immigration Policy

Development Economics X Paper Model Seventeen

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This paper develops a general equilibrium new economics of labor migration model that captures the dynamic and strategic interactions between migrants and host countries present in the same a market economy. The model incorporates time-inconsistent preferences on both sides of the migration decision: (1) migrants may initially intend to return to their origin country, but face changing incentives or constraints that affect their optimal duration of stay and (2) host countries may initially benefit from admitting migrants, but face rising costs or backlash that affect their optimal immigration policy. We derive theoretical results that shed new light on the determinants and consequences of migration and migrant integration.

Opoku-Agyemang, Kweku (2023). "The New New Economics of Labor Migration: Migrants, Host Countries and Endogenous Immigration Policy." Development Economics X Paper Model Seventeen. 

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