PRFDHR Seminar: A Market for Work Permits - Professor Martin Ravallion
It will be politically difficult to liberalize international migration without protecting host-country workers. Professor Martin Ravallion explores in this work the scope for efficiently managing migration using a competitive market for work permits. Host-county workers would have the option of renting out their citizenship work permit for a period of their choice, while foreigners purchase time-bound work permits. Aggregate labor supply need not rise in the host country. However, total output would rise and workers would see enhanced social protection.