A Market for Work Permits

37 Pages Posted: 31 Dec 2019

See all articles by Michael Lokshin

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Martin Ravallion

Georgetown University

Date Written: December 2019

Abstract

It will be politically difficult to liberalize international migration without protecting host-country workers. The paper explores the scope for efficiently managing migration using a competitive market for work permits. Host-county workers would have the option of renting out their citizenship work permit for a period of their choice, while foreigners purchase time-bound work permits. Aggregate labor supply need not rise in the host country. However, total output would rise and workers would see enhanced social protection. Simulations for the US and Mexico suggest that the new market would attract many skilled migrants, boosting GDP and reducing poverty in the US.

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Suggested Citation

Lokshin, Michael and Ravallion, Martin, A Market for Work Permits (December 2019). NBER Working Paper No. w26590. Available at SSRN: https://ssrn.com/abstract=3511300

Michael Lokshin (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

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Moscow, Moscow 119017
Russia

Martin Ravallion

Georgetown University ( email )

Washington, DC 20057
United States

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