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Immigration, Wages, And Compositional Amenities

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  • David Card
  • Christian Dustmann
  • Ian Preston

Abstract

There is strong public opposition to increased immigration throughout Europe. Given the modest economic impacts of immigration estimated in most studies, the depth of antiimmigrant sentiment is puzzling. Immigration, however, does not just affect wages and taxes. It also changes the composition of the local population, threatening the "compositional amenities" that natives derive from their neighborhoods, schools, and workplaces. In this paper we use a simple latent factor model, combined with data for 21 countries from the 2002 European Social Survey (ESS), to measure the relative importance of economic and compositional concerns in driving opinions about immigration policy. The ESS included a unique battery of questions on the labor market and social impacts of immigration, as well as on the desirability of increasing or reducing immigrant inflows. We find that compositional concerns are 2-5 times more important in explaining variation in individual attitudes toward immigration policy than concerns over wages and taxes. Likewise, most of the difference in opinion between more- and lesseducated respondents is attributable to heightened compositional concerns among people with lower education.

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File URL: http://hdl.handle.net/10.1111/j.1542-4774.2011.01051.x
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Bibliographic Info

Article provided by European Economic Association in its journal Journal of the European Economic Association.

Volume (Year): 10 (2012)
Issue (Month): 1 (02)
Pages: 78-119

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Handle: RePEc:bla:jeurec:v:10:y:2012:i:1:p:78-119

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  1. Butcher, Kristin F & Card, David, 1991. "Immigration and Wages: Evidence from the 1980's," American Economic Review, American Economic Association, vol. 81(2), pages 292-96, May.
  2. Anna Maria Mayda, 2006. "Why are people more pro-trade than pro-migration?," CReAM Discussion Paper Series 0611, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Mayda, Anna Maria, 2004. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," IZA Discussion Papers 1115, Institute for the Study of Labor (IZA).
  4. Kevin H. O'Rourke, & Richard Sinnott, 2003. "Migration flows: Political Economy of Migration and the Empirical Challenges," The Institute for International Integration Studies Discussion Paper Series iiisdp06, IIIS.
  5. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," NBER Working Papers 13236, National Bureau of Economic Research, Inc.
  6. John M. Abowd & David Card, 1986. "On the Covariance Structure of Earnings and Hours Changes," NBER Working Papers 1832, National Bureau of Economic Research, Inc.
  7. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
  8. Christian Dustmann & Ian Preston, 2000. "Racial and Economic Factors in Attitudes to Immigration," Econometric Society World Congress 2000 Contributed Papers 0839, Econometric Society.
  9. Kristin F. Butcher & Anne Morrison Piehl, 2007. "Why are Immigrants' Incarceration Rates so Low? Evidence on Selective Immigration, Deterrence, and Deportation," NBER Working Papers 13229, National Bureau of Economic Research, Inc.
  10. Francisco Rivera-Batiz & Myeong-Su Yun & Ira Gang, 2002. "Economic Strain, Ethnic Concentration and Attitudes Towards Foreigners in the European Union," Departmental Working Papers 200214, Rutgers University, Department of Economics.
  11. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
  12. Edward P. Lazear, 1995. "Culture and Language," NBER Working Papers 5249, National Bureau of Economic Research, Inc.
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