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Can Unions Hurt Workers? A Positive Analysis Of Immigration Policy

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  • GIORGIO BELLETTINI
  • CARLOTTA BERTI CERONI

Abstract

This paper studies the determinants of immigration policy in an economy with entrepreneurs and workers where a trade union has market power over wages. The presence of the union induces a social welfare maximizing government to implement a high level of immigration, leading to a welfare loss not only from an aggregate point of view but also from the workers' point of view. When interest group politics prevails and workers' ability to influence the policy‐maker is strengthened by existence of the union, we show the conditions under which workers may benefit from the presence of the union.

Suggested Citation

  • Giorgio Bellettini & Carlotta Berti Ceroni, 2008. "Can Unions Hurt Workers? A Positive Analysis Of Immigration Policy," Economics and Politics, Wiley Blackwell, vol. 20(1), pages 106-124, March.
    • Handle: RePEc:bla:ecopol:v:20:y:2008:i:1:p:106-124
    DOI: 10.1111/j.1468-0343.2007.00313.x
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    References listed on IDEAS

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    1. Kemnitz, Alexander, 2008. "Can immigrant employment alleviate the demographic burden? The role of union centralization," Economics Letters, Elsevier, vol. 99(1), pages 123-126, April.
    2. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants across Countries," CESifo Working Paper Series 1768, CESifo.
    3. Timothy J. Hatton & Jeffrey G. Williamson, 2005. "A Dual Policy Paradox: Why Have Trade and Immigration Policies Always Differed in Labor-Scarce Economies," NBER Working Papers 11866, National Bureau of Economic Research, Inc.
    4. Gordon H. Hanson & Kenneth Scheve & Matthew J. Slaughter, 2007. "Public Finance And Individual Preferences Over Globalization Strategies," Economics and Politics, Wiley Blackwell, vol. 19(1), pages 1-33, March.
    5. Hanson, Gordon H., 2005. "Why Does Immigration Divide America? Public Finance and Political Opposition to Open Borders," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4000, October.
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    Cited by:

    1. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.
    2. Bertrand CRETTEZ, 2011. "Is Selling Immigration Rights Politically Sustainable ?," Discussion Papers (REL - Recherches Economiques de Louvain) 2011042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2007. "Do Interest Groups Affect Immigration?," IZA Discussion Papers 3183, Institute of Labor Economics (IZA).
    4. Giovanni Facchini & Anna Maria Mayda & Prachi Mishra, 2015. "Lobbying Expenditures on Migration: a Descriptive Analysis," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 560-604.

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