Discussion Paper No.1408
Abstract :
This paper investigates the welfare effects of developed countries with heterogeneous and uncoordinated
immigration policies. We build a simple three country model where two rich countries with different
immigration policies receive immigrants from the third developing country. We consider the effects of
economic integration in the form of free mobility of native workers and show that under certain
conditions, wage gap between two develop countries is crucial whether integration ends in win-win or lose-lose.
Keywords : immigration policy; economic integration; policy externality; international migration
JEL classification: F02, F22