Abstract

http://ssrn.com/abstract=2035616
 
 

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Open Borders with Migration Taxes Are the Optimal Policy


Nathanael Smith


Fresno Pacific University; George Mason University

March 15, 2012


Abstract:     
For some reason, economists are less willing to advocate open migration than free trade, even though the traditional free trade models, such as Ricardian comparative advantage and Heckscher-Ohlin, cross-apply to migration. In fact, however, the case for open migration is stronger than the case for free trade, because it is possible to tax foreign-born beneficiaries of open migration policies, through migration taxes. It is here proven that a policy of open borders with migration taxes is Pareto-superior to the alternative of closed borders (or discretionary migration control). Political norms of local inequality aversion seem to prevent the adoption, or even consideration, of such a policy, and the enormous gains in human welfare that would result from it. Some proposals, including a World Migration Organization and passport-free charter cities, are proposed as steps towards a world of open migration.

Number of Pages in PDF File: 25

Keywords: migration, Heckscher-Ohlin, World Migration Organization, World Bank, open borders, sovereignty

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Date posted: April 7, 2012  

Suggested Citation

Smith, Nathanael, Open Borders with Migration Taxes Are the Optimal Policy (March 15, 2012). Available at SSRN: http://ssrn.com/abstract=2035616 or http://dx.doi.org/10.2139/ssrn.2035616

Contact Information

Nathanael Smith (Contact Author)
Fresno Pacific University ( email )
1717 S. Chestnut Ave.
Fresno, CA 93702-4709
United States
George Mason University ( email )
4400 University Drive
Fairfax, VA 22030
United States
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