Question

In the article below(please copy the external link and open then read the short article)- Coase and Immigration:  

https://www.forbes.com/sites/alexnowrasteh/2013/09/04/coase-and-immigration/#38f8646869b4

Outline a few of what you perceive to be the main economic costs and benefits associated with immigration.

Are some of the costs and benefits you identified above external? If so, please make the distinction between pecuniary and real external costs/benefits. Do you believe using private bargaining and the Coase theorem would help solve some of these externalities? Give one or two short examples.

Answer 1

Unlawful immigration inflicts costs on the immigrants themselves & on the society as a whole. The losses to society are- the expenses of border enforcement, law administration, deportation, offences, drugs, imprisonment, healthcare, education, transmittals from the unlawful immigrants to their own nations. The expenditures to the immigrants themselves are- the transportation expenses to & beyond the frontier, documentations & non-pecuniary expenses.

Non-pecuniary expenses are - death when trying an unlawful boundary crossing & stress on account of residing & working unlawfully in the US. The advantages to the immigrants are- greater earnings & access to various social services & for several unlawful immigrants, advantages also consist of automatic American citizenship for kids born in the America. Benefits to society are- an enhanced supply of labour & taxations given by the unlawful immigrants.

Viewed via the Coasean model, immigration constraints are the most detrimental & costly ways to reduce the alleged externalities of immigration. Either some other strategies should be designed to tackle the externalities, nothing should be carried out, or the externalities are probably positive.