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A political economy model of immigration quotas

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Author Info
J. Amegashie ()

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Abstract

The paper examines a model in which the number of immigrants allowed into a country is the outcome of a costly political lobbying contest between a firm and a union. The union and the firm bargain over the wage of natives after the number of immigrants that will be permitted is known. I assume that the lobbying contest is an all-pay auction (i.e., the lobbyist with the higher effort wins with certainty). Comparative statics results are derived to show how the reservation wage of immigrants, the price of the firm’s product, the size of the union and the cost of lobbying affect immigration quotas and the post-immigration wage of natives. Copyright Springer-Verlag Berlin/Heidelberg 2004

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File URL: http://hdl.handle.net/10.1007/s10101-004-0078-6
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Publisher Info
Article provided by Springer in its journal Economics of Governance.

Volume (Year): 5 (2004)
Issue (Month): 3 (November)
Pages: 255-267
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Handle: RePEc:spr:ecogov:v:5:y:2004:i:3:p:255-267

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Related research
Keywords: All-pay auction; contests; immigration quotas; lobbying;

Cited by:
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  1. Giorgio Bellettini & Carlotta Berti Ceroni, 2005. "When the Union Hurts the Workers: A Positive Analysis of Immigration Policy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Gil S. Epstein & Odelia Heizler (Cohen), 2007. "Illegal Migration, Enforcement and Minimum Wage," IZA Discussion Papers 2830, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Epstein, Gil S. & Nitzan, Shmuel, 2005. "The Struggle over Migration Policy," IZA Discussion Papers 1533, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. 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. [Downloadable!] (restricted)
    Other versions:
  5. Tapio Palokangas, 2008. "Self-Interested Governments, Unionization, and Legal and Illegal Immigration," AUCO Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(1), pages 007-020, March. [Downloadable!]
  6. Gil Epstein, 2006. "The political economy of population economics," Journal of Population Economics, Springer, vol. 19(2), pages 255-257, June. [Downloadable!] (restricted)
  7. Giovanni Facchini & Anna Maria Mayda & Prachi Mishra, 2007. "Do Interest Groups Affect Immigration?," IZA Discussion Papers 3183, Institute for the Study of Labor (IZA). [Downloadable!]
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