Ep. 75: Moral hazard and migration

AEA Research Highlights

Since 2014, over 15,000 migrants have died or gone missing trying to make the voyage from the north coast of Africa to southern Europe. In response, European authorities have launched several search and rescue operations. There are few signs that migration along this deadly route is slowing down. In fact, efforts to curb migrant deaths may encourage even more migrants to make the perilous journey.

In a paper in the American Economic Journal: Economic Policy, authors Claudio Deiana, Vikram Maheshri, and Giovanni Mastrobuoni found evidence that migrants and smugglers responded to search and rescue operations by attempting even more dangerous crossings. However, the authors still say that such operations are likely beneficial to migrants on the whole.

Maheshri recently spoke with Tyler Smith about the impact of search and rescue operations on the market for smuggling along the Central Mediterranean Route and what policymakers should do to reduce migrant deaths.