MIGRATION COMPETITION IN EUROPE

In this article, we propose a theoretical model in order to define two possible settings where the European “migration competition” could be analysed. In this model we analyse the scenario in which there are two regions: a receiving country and a net sending country. Each country has the opportunity to increase, by investing resources, the level of integration between countries which consequently reduces the level of migration costs. Thus it is possible to capture the receiving country’s trade off between investing resources in order to attract foreign high skilled workers or investing on educational incentives for his citizens. Finally, we extend the model by introducing a third region. In both case analysed, the presence of a central authority which coordinates the migration and fiscal policies is determinant to obtain better results.