Binational US-Mexico Immigration Authority Could Improve Workers' Policy Zach Rausnitz - FierceMarkets
go to original February 8, 2014

Were the United States and Mexico to set up a binational immigration authority that shares detailed information about migrants, policy responses in both countries could improve, says a new Rand Corp. study.

That authority "would compile detailed data on each individual migrant's work history, employers, qualifications, occupations, employment and unemployment periods, family characteristics, and contributions to the social security systems of both countries," the report proposes.

Detailed data would improve each country's understanding of the labor market. For the United States, knowing more about migrants and the drivers of immigration could help it craft more effective visa policies, for example. Policies that more closely harmonize the supply of migrant labor and the demand for it could reduce illegal immigration and improve border security.

The report also says that the United States should consider a bilateral social security agreement with Mexico, in order to reduce dual taxation when employees contribute to social security both where they work and in their country of origin. The lack of an agreement encourages migrants to work for more years in the United States, in order to claim retirement benefits, when they might otherwise prefer to return to Mexico sooner.

Additionally, "without such an agreement between the United States and Mexico, return migrants are less likely to qualify for social security benefits upon return to Mexico and could be more vulnerable to poverty in old age," the report says.

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