Can market mechanisms solve the refugee crisis?
The unequal distribution of refugees across countries could unravel the international refugee protection system or, in the case of the EU, hinder a common policy response to refugee crises. A way to distribute refugees efficiently, while respecting their rights, is to combine two market mechanisms. First, a market for tradable refugee admission quotas that allows refugees to be established wherever it is less costly to do so. Second, a matching system that links refugees to their preferred destinations, and host countries to their preferred types of refugees. The proposal is efficient but has yet to be tested in practice. ; Support from the Ministerio de Economía y Competitividad (Spain), grant MDM 2014-0431, and Comunidad de Madrid, grant MadEco-CM (S2015/HUM-3444), is gratefully acknowledged