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Economics

By  and Richard Bruns and Richard Bruns

Abstract

I estimate the demand curve for Legal Permanent Residence in the US, and the government revenues and migrant welfare gains that could be achieved by replacing all or parts of the current immigration system with a Uniform Price Auction. Willingness to pay and welfare are based on the net present value of the difference in income that people earn in the US compared to other countries. I obtain an equilibrium annual demand curve by modeling the dynamics of how pent-up demand for residence responds to the introduction of an auction for residence permits. I separately estimate the demand curves for each major source of demand for residence in the US, and combine them to find the total. I find that there are currently large inefficiencies in border controls, the Di-versity Visa Lottery, and Removals of Noncriminal Aliens. A revenue-maximixing auction of LPR to the the population of workers who have historically entered il-legally would generate $10.2 billion in revenues and $8.5 billion in gains to the migrants. Changing the Diversity Visa Lottery to an auction, while keeping th

Year: 2012
OAI identifier: oai:CiteSeerX.psu:10.1.1.1004.9950
Provided by: CiteSeerX
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