An Economic Instrument to Improve Migration

Abstract

The Naturally Optimised Revenue Demand in Communities (NORDIC) model is employed to improve migration. The proposed model produces constructed shadow costs to be inserted into the public budgets to induce economic incentives to improve the integration of immigrants. The resulting shadow cost, and its impact on the PSBR, constitutes a single, key factor that by one digit only expresses how successful the integration is over time. The human tolerance is encapsulated in the launched model through a single factor in the NORDIC model equation that considers the population's general acceptance of immigrants that affects the result. Particularly, the case study shows how refugees should be better integrated into the Swedish society by application of the NORDIC model. The results point at a promising methodology for successfully integrating migrants by using economic instruments. The major conclusion is that the NORDIC model can be used for improving the immigration to a nation. In particular, the suitable level of refugee-reception is possible to determine by employing the NORDIC model in a societal context to improve a nation’s GDP and the citizens’ welfare. Possible end users are the migration-authorities and politicians that want a comprehensive tool to improve the efficiency of the reception of immigrants and refugees to the current nation. Recommendations for the use of the proposed model are given and further research suggested.