European Business Schools Librarian's Group

ESSEC Working Papers,
ESSEC Research Center, ESSEC Business School

No WP2002: A matching model of the market for migrant smuggling services

Claire Naiditch () and Radu Vranceanu ()
Additional contact information
Claire Naiditch: Université de Lille
Radu Vranceanu: ESSEC Research Center, ESSEC Business School, Postal: ESSEC Research Center, BP 105, 95021 Cergy, France

Abstract: The important flows of irregular migration could not exist without the emergence of a criminal market for smuggling services. A matching model à la Pissarides (2000) provides a well-suited framework to analyze such a flow market with significant trade frictions. Our analysis considers the competitive segment of this underground market in which small-business smugglers can freely enter. The model allows us to determine the equilibrium number of smugglers, the matching probability, the number of successful irregular migrants and, as an original concept, the equilibrium migrant welfare. Changes in parameters can be related to the various policies implemented by destination countries to cut down irregular migration.

Keywords: Smuggling; Irregular migration; Matching model; Migrant welfare

JEL-codes: F22; J46; O15

37 pages, January 30, 2020

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