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Migrant smuggling when exploitation is private information

Author

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  • Yuji Tamura
Abstract
This study contributes to the small theoretical literature on human smuggling by assuming for the first time asymmetric information in analysis. The assumption raises the possibility of an adverse selection equilibrium where only exploitative smugglers are employed at a low fee even though migrants are willing to pay non‐exploitative smugglers a high fee. More important, I find that improved inland apprehension of migrants may increase the incidence of migrant exploitation while failing to decrease smuggling attempts. Furthermore, improved border apprehension of migrants and smugglers may not affect the market at all. Contrebande d'immigrants quand l'information à propos de l'exploitation est privée. Cette étude contribue au corpus restreint de littérature théorique sur la contrebande d'immigrants en développant une analyse pour le cas où il y a information asymétrique. Le postulat soulève la possibilité d'un équilibre de sélection adverse où les contrebandiers sont engagés à un taux de rémunération faible même si les immigrants sont prêts à payer des frais élevés à des contrebandiers qui ne sont pas des exploiteurs. Plus important, un mécanisme amélioré d'interception des immigrants illégaux à la frontière peut accroître l'incidence de l'exploitation des immigrants sans diminuer les tentatives de contrebande. De plus, un mécanisme amélioré d'interception des immigrants et des contrebandiers à la frontière peut fort bien ne pas affecter ce marché du tout.

Suggested Citation

  • Yuji Tamura, 2013. "Migrant smuggling when exploitation is private information," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(4), pages 1463-1479, November.
    • Handle: RePEc:wly:canjec:v:46:y:2013:i:4:p:1463-1479
    DOI: 10.1111/caje.12060
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    References listed on IDEAS

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    5. Tamura, Yuji, 2010. "Migrant smuggling," Journal of Public Economics, Elsevier, vol. 94(7-8), pages 540-548, August.
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    Cited by:

    1. Emmanuelle Auriol & Alice Mesnard, 2016. "Sale of Visas: a Smuggler's Final Song?," Economica, London School of Economics and Political Science, vol. 83(332), pages 646-678, October.
    2. Muhammad Iqbal, 2017. "Border Communities Understanding on The Human Trafficking in Indonesia-Malaysia Border Region: Case Study in Sambas District, West Kalimantan," GATR Journals jmmr166, Global Academy of Training and Research (GATR) Enterprise.
    3. Naiditch, Claire & Vranceanu, Radu, 2020. "A matching model of the market for migrant smuggling services," ESSEC Working Papers WP2002, ESSEC Research Center, ESSEC Business School.
    4. Djajić, Slobodan & Vinogradova, Alexandra, 2014. "Liquidity-constrained migrants," Journal of International Economics, Elsevier, vol. 93(1), pages 210-224.
    5. Djajić, Slobodan, 2014. "Asylum seeking and irregular migration," International Review of Law and Economics, Elsevier, vol. 39(C), pages 83-95.
    6. Slobodan Djajić, 2015. "Financial Support from the Family Network and Illegal Immigration," Review of International Economics, Wiley Blackwell, vol. 23(2), pages 387-403, May.
    7. Slobodan Djajić & Michael S. Michael, 2014. "Controlling Illegal Immigration: On the Scope for Cooperation with a Transit Country," Review of International Economics, Wiley Blackwell, vol. 22(4), pages 808-824, September.
    8. Slobodan Djajić, 2017. "Transit migration," Review of International Economics, Wiley Blackwell, vol. 25(5), pages 1017-1045, November.
    9. Auriol, A. & Mesnard, A., 2013. "Sale of visas: a smuggler's final song?," Working Papers 13/06, Department of Economics, City University London.
    10. Slobodan Djajić & Alexandra Vinogradova, 2019. "Immigration Policies and the Choice between Documented and Undocumented Migration," Economica, London School of Economics and Political Science, vol. 86(341), pages 201-228, January.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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