A Market for Work Permits

Lokshin, Michael; Ravallion, Martin

doi:10.3386/w26590

Cited by 2 publications

(2 citation statements)

References 14 publications

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“…Another variant is allowing native-born workers to auction off work permits-their right to work, in effect-to foreign workers [12]. A scheme like that would directly compensate native-born workers, and the least well-off natives should gain the most from it.…”

Section: How Other Innovative Models Compare With Visa Auctionsmentioning

confidence: 99%

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Should countries auction immigrant visas?

Zavodny¹

2023

izawol

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Under work-based visa auctions, employers would bid for the right to hire foreign workers, who would then receive a visa. Governments that opt to auction temporary work-based visas should also consider creating a pathway to permanent resident visas for immigrants who succeed in the labor market. A resale market in unused or unwanted visas, visa portability across employers, and enforcement are all important components of a successful program to auction visas. Policymakers who want to boost immigration's economic contribution should consider auctioning permits to hire foreign workers to employers rather than auctioning visas directly to immigrants. ELEVATOR PITCHMany immigrant destination countries face considerable pressure to change their immigration policies. One of the most innovative policies is auctioning the right to immigrate or to hire a foreign worker to the highest bidders. Visa auctions would be more efficient than current ways of allocating visas, could boost the economic contribution of immigration to the destination country, and would increase government revenues. However, visa auctions might weaken the importance of family ties in the migration process and create concerns about fairness and accessibility. No country has yet auctioned visas, although several have considered doing so. KEY FINDINGS ConsNo visa auctions have been conducted, so their effects are only theoretical. Auctions do not guarantee the admission of immigrants who will contribute the most to longterm economic growth. Visa auctions might change the composition of immigrant populations in ways that are unpopular, particularly among immigrants who want to bring in family members. Some potential immigrants and employers may view auctions as too complex or unfair. Sending countries might be adversely affected if the composition of emigrants changes. ProsAuctions would allocate visas more efficiently across immigrants or employers. By enabling workers with the highest-valued skills to immigrate, employer-based auctions could boost economic growth. Government revenue would increase with a visa auction system, enabling governments to fund other programs, cut taxes, or reduce budget deficits. Visa auctions would substitute market forces for government determination of who should be able to immigrate. Auctions are a flexible alternative to complicated point systems for encouraging high-skilled workers to immigrate.

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Section: How Other Innovative Models Compare With Visa Auctionsmentioning

confidence: 99%

“…The author thanks an anonymous referee for helpful suggestions on the first version of this article, and the IZA World of Labor editors for their assistance on both versions. Version 2 of the article includes new figures and adds new "Key references" [2], [5], [6], [8], [9], [12].…”

Section: Acknowledgmentsmentioning

confidence: 99%

Should countries auction immigrant visas?

Zavodny¹

2023

izawol

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A market for citizenships: Should citizenship be commodified?

Bengtsson

2023

Kyklos

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Starting from the assumption that citizenship is property that would be more valuable if it were transferable, the paper explores the idea of commodification of citizenship. The paper provides arguments in favor of commodification and recommendations to how the market for citizenships should be designed. A market for citizenships could result in an improved matching between employer and employee when citizens swap citizenship with each other. Successful States could issue new citizenships and thus make it possible for a greater share of the world population to live and work within the countries with the best institutions. The combined effect would be a higher global productivity. Additionally, market prices on citizenships would provide information on institutional quality and thus provide politicians with information on voters' preferences as well as voters with information on the quality of the work of the government. The market value of a tradable citizenship is also found to be a candidate as tax base for a redistributive tax on a global level that could address some of the inherent inequality with birthright citizenships. Those potential benefits aside, several problems with a market for citizenship are also found and discussed, among those the age‐dependent value of citizenships.

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A Market for Work Permits

Cited by 2 publications

References 14 publications

Should countries auction immigrant visas?

Should countries auction immigrant visas?

A market for citizenships: Should citizenship be commodified?

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