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Immigration Quotas in the Globalized Economy

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Author Info

  • Fujita, M.

    (Konan University, Kobe, Japan, and the Research Institute of Economy, Trade and Industry, Tokyo, Japan)

  • Weber, S.

    (Department of Economics, SMU, USA, and CEPR)

Abstract

We consider a model with two industrialized countries facing a flow of high-skilled immigrants from the "rest of the world". The countries, that choose immigration quotas, differ in degree of labor complementarity between the natives and immigrants, the population size, and level of cultural friction. We show that the total number of immigrants in equilibrium can be excessive, so that coordinated and harmonized immigration policies may improve the welfare of both countries. It is not necessarily true though that both countries would be better off by reducing the number of immigrants. If countries' characteristics are sufficiently diverse, no country could be better off by reducing its immigrant quota, while the other would benefit from a larger number of immigrants.

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Bibliographic Info

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

Volume (Year): (2010)
Issue (Month): 7 ()
Pages: 10-23

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Handle: RePEc:nea:journl:y:2010:i:7:p:10-23

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Related research

Keywords: intra-country heterogeneity; labor complementarity; immigration quota; policy harmonization;

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References

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  1. Carole Juliette Maignan (ed.) & Gianmarco Ottaviano (ed.) & Dino Pinelli (ed.), 2003. "Economic Growth, Innovation, Cultural Diversity. What Are We All Talking About? A Critical Survey of the State-of-the-art," Working Papers 2003.12, Fondazione Eni Enrico Mattei.
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  6. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute for the Study of Labor (IZA).
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  10. Dustmann, Christian & Preston, Ian, 2000. "Racial and Economic Factors in Attitudes to Immigration," CEPR Discussion Papers 2542, C.E.P.R. Discussion Papers.
  11. Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue, 2008. "A simple theory of the optimal number of immigrants," PSE Working Papers halshs-00586821, HAL.
  12. Facchini, Giovanni & Mayda, Anna Maria & Puglisi, Riccardo, 2009. "Illegal immigration and media exposure: Evidence on individual attitudes," CEPR Discussion Papers 7593, C.E.P.R. Discussion Papers.
  13. Morgan, Kevin, 1996. "Regional advantage: Culture and competition in Silicon Valley and route 128 : AnnaLee Saxenian, (Harvard University Press, Cambridge, MA, 1994) 226 pp; Price [UK pound]19.95, ISBN 0 674 75339 9," Research Policy, Elsevier, vol. 25(3), pages 484-485, May.
  14. Gene Grossman, 2002. "The Distribution of Talent and the Pattern and Consequences of International Trade," CESifo Working Paper Series 745, CESifo Group Munich.
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Cited by:
  1. Victor Ginsburgh & Shlomo Weber, 2012. "Culture Languages and Economics," Working Papers ECARES ECARES 2012-009, ULB -- Universite Libre de Bruxelles.

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