Smuggling Humans : A Theory of Debt-Financed Migration

@inproceedings{Friebel2002SmugglingH,
  title={Smuggling Humans : A Theory of Debt-Financed Migration},
  author={Guido Friebel and Sergei Guriev},
  year={2002}
}
Smuggling Humans: A Theory of Debt-Financed Migration We introduce financial constraints in a theoretical analysis of illegal immigration. Intermediaries finance the migration costs of wealth-constrained migrants, who enter temporary servitude contracts to pay back the debt. These debt/labor contracts are more easily enforceable in the illegal than in the legal sector of the host country. Hence, when moving from the illegal to the legal sector becomes more costly, for instance, because of… CONTINUE READING
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