Who is against Free Migration? Lobbying, the Non-traded Sector and the Choice between the Customs Union and the Common Market

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Who is against Free Migration? Lobbying, the Non-traded Sector and the Choice between the Customs Union and the Common Market

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Cyrille Schwellnus

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Cyrille Schwellnus

Abstract

While economists usually resort to redistribution between individuals of different skill levels and majority voting when explaining migration policies, the present political economy model of preferential trade and migration agreements suggests an alternative approach based on the following two observations. Firstly, in the presence of free trade in goods between the member states of the EU, migration between the member states mainly redistributes income between individuals employed in the traded and the non-traded sectors. Secondly, various episodes of restrictive migration legislation suggest that lobbying from vocal interest groups rather than majority voting shapes migration policies in the EU.

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Paper provided by European University Institute in its series Economics Working Papers with number ECO2005/06.

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Date of creation: 2005
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Handle: RePEc:eui:euiwps:eco2005/06

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
F15 - International Economics - - Trade - - - Economic Integration
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-08-13 (All new papers)
NEP-INT-2005-08-13 (International Trade)
NEP-POL-2005-08-13 (Positive Political Economics)

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Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June. [Downloadable!] (restricted)
Bernheim, B Douglas & Whinston, Michael D, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, MIT Press, vol. 101(1), pages 1-31, February. [Downloadable!] (restricted)

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