Tuesday, May 29, 2012

Immigration Article of the Day: Open Borders with Migration Taxes Are the Optimal Policy by Nathanael Smith

Open Borders with Migration Taxes Are the Optimal Policy by Nathanael Smith Fresno Pacific University; George Mason University.

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.

KJ

http://lawprofessors.typepad.com/immigration/2012/05/immigration-article-of-the-day-open-borders-with-migration-taxes-are-the-optimal-policy-by-nathanael.html

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