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Prejudice and Immigration

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Author Info

  • Paolo E. Giordani

    ()
    (Department of Economics and Business, LUISS Guido Carli University)

  • Michele Ruta

    ()
    (World Trade Organization, Economics Research Division)

Abstract

We study immigration policy in a small open receiving economy under self-selection of migrants. We show that immigration policy choice affects and is affected by the migratory decisions of skilled and unskilled foreign workers. From this interaction multiple equilibria may arise, which are driven by the natives' expectations on the migrants' size and skill composition (and, hence, on the welfare effects of immigration). In particular, pessimistic (optimistic) beliefs induce a country to impose higher (lower) barriers to immigration, which crowd out (crowd in) skilled migrants and thus confirm initial beliefs. This self-fulfilling mechanism sustains the endogenous formation of an anti or pro-immigration "prejudice". These insights may help rationalize the cross-country variation in attitudes towards immigration and choices of immigration policy.

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Bibliographic Info

Paper provided by Dipartimento di Economia e Finanza, LUISS Guido Carli in its series Working Papers CELEG with number 0904.

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Date of creation: 2009
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Handle: RePEc:lui:celegw:0904

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Keywords: Immigration policy; skilled/unskilled workers; small open economy; multiple equilibria.;

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References

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  1. Kevin H. O'Rourke & Richard Sinnott, 2004. "The Determinants of Individual Attitudes Towards Immigration," Trinity Economics Papers 20042, Trinity College Dublin, Department of Economics.
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Cited by:
  1. Milo Bianchi & Paolo Buonanno & Paolo Pinotti, 2012. "Do Immigrants Cause Crime?," Working Papers halshs-00670036, HAL.
  2. Milo Bianchi, 2013. "Immigration Policy and Self-Selecting Migrants," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(1), pages 1-23, 02.
  3. Paolo E. Giordani & Michele Ruta, 2012. "Self-Confirming Immigration Policy," CESifo Working Paper Series 3762, CESifo Group Munich.
  4. repec:hal:wpaper:halshs-00586864 is not listed on IDEAS

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