The Effects of Border Patrol on Illegal Immigration

Abstract

This paper extends Ethier's (1986) small one-country model of illegal immigration. We construct a standard (two-country, one good. two-factor) model, and examine the welfare effects of border enforcement on the home country, the foreign country and the world. We consider these effects both in the presence and in the absence of capital mobility. We conclude that in the absence of capital mobility, border enforcement may be costly in terms of global welfare, whereas in the presence of capital mobility, it may benefit global welfare.