A number of developed countries have implemented guest-worker programs in recent
decades. Its basic feature is the temporary presence of the foreign guest-workers. The
problem with such programs is that there is little to prevent these guest-workers from entering
the illegal job market and overstay their legal welcome, which is the reason why these
programs became unpopular over time. This paper argues that a well-designed guest-worker
program could be acceptable to host countries and could be beneficial for all parties
concerned. It presents a host country immigration policy that tries to achieve these objectives
by raising the likelihood that guest-workers return to their home country when the permissible
time period elapses, and that reduces the number of immigrants entering the country illegally.
The policy has three components and is based on legal responsibility by the guest-workers,
new insurance markets, and cooperation with the sending country or countries.
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