ABSTRACT
This contribution gives a short survey of the economic discussions on illegal migration. It starts with two major statements. First, illegal migration is itself determined by migration legislation defining who may enter, stay and/or work legally and therefore who is illegal. If there were no legal barriers to entry, residence or work – as pertains within nation states, or for EU nationals within the European Union – illegal migration would be a non-issue. Secondly, there is a demand for illegal immigrants by certain vested interest groups. They influence the political/economic process in such a way that migration laws are not enforced strictly. Next we discuss several policy options to deal with illegal migration – external border controls, internal controls, employer sanctions and amnesty programmes. We conclude that as a short-term policy, employer sanctions are the most effective instrument to reduce incentives for the illegal employment of aliens. However, illegal employment of both natives and foreigners is the result of inefficiencies in the labour market. Finding and eliminating the causes and nature of these inefficiencies provides the only possible long-term strategy to reduce economic incentives for illegal immigration. A good labour market policy is the only valid option for combating illegal employment.
