publication . Preprint . 2008

Prejudice and Immigration

Paolo E Giordani; Michele Ruta;
Open Access
  • Published: 28 Jul 2008
Abstract
We study immigration policy in a small open receiving economy under self-selection of migrants. We show that immigration policy choice affects and is affected by the migratory decisions of skilled and unskilled foreign workers. From this interaction multiple equilibria may arise, which are driven by the natives' expectations on the migrants' size and skill composition (and, hence, on the welfare effects of immigration). In particular, pessimistic (optimistic) beliefs induce a country to impose higher (lower) barriers to immigration, which crowd out (crowd in) skilled migrants and thus confirm initial beliefs. This self-fulfilling mechanism sustains the endogenou...
Subjects
free text keywords: Immigration policy, skilled/unskilled workers, small open economy, multiple equilibria., jel:F22, jel:J61, jel:J24
19 references, page 1 of 2

[1] Alesina, A. and G.M. Angeletos (2005). “Fairness and Redistribution,”American Economic Review, 95, 960-980.

[2] Bellettini, G. and C. Berti Ceroni (2007). “Immigration Policy, Self-Selection, and the Quality of Immigrants”, Review of International Economics, 15(5), 869-877.

[3] Belot, M. and Hatton, T.J (2008). "Immigrant Selection in the OECD", CEPR Working Paper No. 6675. [OpenAIRE]

[4] Bianchi, M. (2007). "Immigration Policy and Self-Selecting Migrants", mimeo, Paris School of Economics.

[5] Borjas, G. J. (1987). "Self selection and the earnings of immigrants", American Economic Review, 77, pp. 531-553.

[7] Borjas, G. J. (2003) "The Labor Demand Curve Is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market”, Quarterly Journal of Economics, 118(4), 1335-1374. [OpenAIRE]

[8] Brauninger, M. and J.P. Vidal (2000). “Private Versus Public Financing of Education in Endogenous Growth”, Journal of Population Economics, 13, 387-401.

[9] Brucker, H. and C. Defoort (2006). "The (Self-)Selection of International Migrants Reconsidered: Theory and New Evidence", IZA Discussion Paper No. 2052. [OpenAIRE]

[10] Casella, A. (2005). "Redistribution Policy. A European Model", Journal of Public Economics, 89, 1305-1331.

[21] Giordani, P., M. Ruta and S. Tai (2009). "Individual Attitudes and Migrants’Skill Composition in OECD Countries", mimeo, WTO.

[22] Hanson, G.H., K. Scheve and M.J. Slaughter (2007). "Individual Preferences over High-Skilled Immigration in the United States", in Jagdish Bhagwati (ed.) "Skilled Migration Today: Prospects, Problems, and Policies, Council on Foreign Relations Press", forthcoming 2007.

[23] Hatton, T.J. and J.G. Williamson (2004). "International Migration in the Long-Run: Positive Selection, Negative Selection and Policy", NBER Working Paper, 10529.

[24] Mayda, A. (2006). "Who is Against Immigration? A Cross-Country Investigation of Individual Attitudes towards Immigrants", Review of Economics and Statistics, 88(3), pp. 510-530.

[25] Mayda, A. and K. Patel (2007). "International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows", Mimeo. [OpenAIRE]

[26] McKenzie, D. and H. Rapoport (2006). "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks", Mimeo.

19 references, page 1 of 2
Abstract
We study immigration policy in a small open receiving economy under self-selection of migrants. We show that immigration policy choice affects and is affected by the migratory decisions of skilled and unskilled foreign workers. From this interaction multiple equilibria may arise, which are driven by the natives' expectations on the migrants' size and skill composition (and, hence, on the welfare effects of immigration). In particular, pessimistic (optimistic) beliefs induce a country to impose higher (lower) barriers to immigration, which crowd out (crowd in) skilled migrants and thus confirm initial beliefs. This self-fulfilling mechanism sustains the endogenou...
Subjects
free text keywords: Immigration policy, skilled/unskilled workers, small open economy, multiple equilibria., jel:F22, jel:J61, jel:J24
19 references, page 1 of 2

[1] Alesina, A. and G.M. Angeletos (2005). “Fairness and Redistribution,”American Economic Review, 95, 960-980.

[2] Bellettini, G. and C. Berti Ceroni (2007). “Immigration Policy, Self-Selection, and the Quality of Immigrants”, Review of International Economics, 15(5), 869-877.

[3] Belot, M. and Hatton, T.J (2008). "Immigrant Selection in the OECD", CEPR Working Paper No. 6675. [OpenAIRE]

[4] Bianchi, M. (2007). "Immigration Policy and Self-Selecting Migrants", mimeo, Paris School of Economics.

[5] Borjas, G. J. (1987). "Self selection and the earnings of immigrants", American Economic Review, 77, pp. 531-553.

[7] Borjas, G. J. (2003) "The Labor Demand Curve Is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market”, Quarterly Journal of Economics, 118(4), 1335-1374. [OpenAIRE]

[8] Brauninger, M. and J.P. Vidal (2000). “Private Versus Public Financing of Education in Endogenous Growth”, Journal of Population Economics, 13, 387-401.

[9] Brucker, H. and C. Defoort (2006). "The (Self-)Selection of International Migrants Reconsidered: Theory and New Evidence", IZA Discussion Paper No. 2052. [OpenAIRE]

[10] Casella, A. (2005). "Redistribution Policy. A European Model", Journal of Public Economics, 89, 1305-1331.

[21] Giordani, P., M. Ruta and S. Tai (2009). "Individual Attitudes and Migrants’Skill Composition in OECD Countries", mimeo, WTO.

[22] Hanson, G.H., K. Scheve and M.J. Slaughter (2007). "Individual Preferences over High-Skilled Immigration in the United States", in Jagdish Bhagwati (ed.) "Skilled Migration Today: Prospects, Problems, and Policies, Council on Foreign Relations Press", forthcoming 2007.

[23] Hatton, T.J. and J.G. Williamson (2004). "International Migration in the Long-Run: Positive Selection, Negative Selection and Policy", NBER Working Paper, 10529.

[24] Mayda, A. (2006). "Who is Against Immigration? A Cross-Country Investigation of Individual Attitudes towards Immigrants", Review of Economics and Statistics, 88(3), pp. 510-530.

[25] Mayda, A. and K. Patel (2007). "International Migration: A Panel Data Analysis of the Determinants of Bilateral Flows", Mimeo. [OpenAIRE]

[26] McKenzie, D. and H. Rapoport (2006). "Self-Selection Patterns in Mexico-U.S. Migration: The Role of Migration Networks", Mimeo.

19 references, page 1 of 2
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publication . Preprint . 2008

Prejudice and Immigration

Paolo E Giordani; Michele Ruta;