Project description
Maximising the benefits of immigration policies
International migration affects millions of people and generally benefits destination countries, though it can negatively impact the job prospects of some native workers. The effects on origin countries vary depending on the type of migrant. Effective policies should aim to maximise benefits, promote immigrant integration and support those adversely affected, thereby improving overall welfare. The ERC-funded OPIMPOL project seeks to develop a framework for designing policies and assessing their impacts. The project will focus on redistribution policies that transfer benefits from winners to losers, optimal visa allocations for immigrants and tax schemes for high-earning foreigners to encourage skill-based self-selection. Additionally, it will examine selective immigration policies that benefit origin country economies.
Objective
International migration affects the lives of millions, both at origin and at destination. It is known to generate aggregate benefits for destination countries even though labor market prospects of some natives may be worsened. Depending on the type of migrants, it can also benefit or harm origin countries. The design of immigration policies that maximize benefits, foster immigrant integration, and compensate potential losers is key for overall welfare. This project develops a systematic framework to design optimal immigration policies and provides a comprehensive evaluation of such policies’ welfare effects.
We build our analysis focusing on five policy goals: i) redistribution policies that transfer some of the benefits from winners to losers; ii) optimal methods to assign immigrant visas; iii) preferential tax schemes for high-earning foreigners that encourage positive self-selection in skills; iv) selective immigration policies that are not detrimental, or even foster, origin countries’ economic development; and v) spatial allocation policies for immigrants that incentivize the accumulation of skills and assimilation.
We develop and estimate a dynamic equilibrium framework to achieve these goals. The framework features, among others: human capital and labor supply decisions both at origin and destination; endogenous migration and return migration decisions; multiple sources of observed and unobserved heterogeneity; a worldwide general equilibrium that accounts for aggregate and idiosyncratic uncertainty; and the presence of knowledge spillovers and externalities from using skilled labor and capital equipment in production. The richness of the model and the variety of datasets used in estimation are unprecedented, which poses important methodological challenges. We develop novel estimation algorithms that allow us to address these challenges. We use the estimated model to design and evaluate optimal policies through simulations.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
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Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2023-COG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
28006 MADRID
Spain
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.