Strategic amnesty and credible immigration reform

Why do countries that impose employer sanctions to deter the illegal entry of foreign workers nevertheless grant amnesty to illegal immigrants? In thi s article, I provide a positive theory of amnesty provision in a model wher e the constrained optimal immigration reform, involving the joint use of em ployer sanctions and border interdictions, is time-inconsistent. In particu lar, my framework demonstrates that host countries of immigration can enhan ce the credibility of their immigration reforms by "binding their own hands " and strategically granting a socially excessive amount of amnesty to ille gal workers.