Does Temporary Migration Have to Be Permanent?
52 Pages Posted: 17 Jun 2005
Date Written: March 2005
Abstract
The choice between temporary and permanent migration is today central to the design of migration policies. We draw a distinction between the two types of migration on the basis of the associated social cost and the dynamics of learning by migrants. We find that unilateral migration policies are globally inefficient because they lead to too much permanent migration and too little temporary and overall migration. Existing international agreements on labor mobility, such as the WTO's General Agreement on Trade in Services, have failed to do better because they seek primarily to induce host countries to make commitments to allow entry. Instead, Pareto gains and more liberal migration could be achieved through multilateral agreements that enable host countries to commit to repatriation.
JEL Classification: J24, F22
Suggested Citation: Suggested Citation