search query: @author Guriev, S. / total: 5
reference: 4 / 5
| Author: | Friebel, G. Guriev, S. |
| Title: | Smuggling humans: A theory of debt-financed migration |
| Journal: | Journal of the European Economic Association
2006 : DEC, VOL. 4:6, p. 1085-1111 |
| Index terms: | finance debt theories labour markets immigration |
| Language: | eng |
| Abstract: | This paper introduces financial constraints in a theoretical analysis of illegal immigration. Intermediaries (hereafter as: intms.) finance the migration (here as: migr.) costs of wealth-constrained migrants entering temporary work contracts to repay the debt. These debt/labour contracts are easier to enforce in the illegal (as: il-s.) than in the legal sector (as: lg-s.) of the host country. Thus, when moving from the il-s. to the lg-s. becomes more costly, i.e. due to stricter deportation policies, fewer immigrants default on debt. This reduces the risks for intms., who then are more willing to finance illegal migr. Stricter deportation policies may thus, ex ante, increase rather than decrease the flow of illegal migrants etc. |
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