Working Paper

Migration Policy: Lessons from Cooperatives

Margit Osterloh, Bruno S. Frey
CESifo, Munich, 2017

CESifo Working Paper No. 6364

We propose an immigration policy based on the model of cooperatives. Incoming migrants have to acquire a participation certificate. In exchange, the immigrants may enter the country of choice without danger. The revenue goes to the country of the recipient nation rather than to human smugglers. The cost would be much lower than today’s efforts to secure the borders. Asylum seekers get back the money paid for the certificate. Immigration is therewith regulated more efficiently than today. Not all entrance barriers and coercive measures to prevent illegal entry would disappear. However, the pressure of illegal migrants is strongly reduced.

CESifo Category
Public Choice
Social Protection
Labour Markets
Keywords: immigration, asylum, cooperatives, participation certificates, borders
JEL Classification: D710, F220, F660, J460, J610