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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. Copyright 2007 Blackwell Publishing Ltd..

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0343.2007.00313.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics & Politics.

Volume (Year): 20 (2008)
Issue (Month): 1 (03)
Pages: 106-124

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Handle: RePEc:bla:ecopol:v:20:y:2008:i:1:p:106-124

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985

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Cited by:
  1. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2008. "Do Interest Groups Affect US Immigration Policy?," CEPR Discussion Papers 6898, C.E.P.R. Discussion Papers.
  2. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2007. "Do Interest Groups Affect Immigration?," IZA Discussion Papers 3183, Institute for the Study of Labor (IZA).
  3. 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).

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