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Unions and the political economy of immigration

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Author Info
Carlotta Berti Ceroni
Giorgio Bellettini

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Abstract

To study the political economy of immigration, we develop a common agency model where a trade union and a lobby of entrepreneurs offer contributions to the government to influence its decision on how many immigrants can enter the domestic economy. In the political equilibrium, anticipating that the union will use its power to raise the wage rate above the competitive level, the government sets the level of immigration above the socially optimal one. In this case, the union would be better off by foregoing its power on wage determination and engaging exclusively in the lobbying activity

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File URL: http://www.dse.unibo.it/belletti/unions2.pdf
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Publisher Info
Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 494.

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Date of creation: 2004
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Handle: RePEc:red:sed004:494

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Related research
Keywords: Immigration; unions; lobbying;

Find related papers by JEL classification:
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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This page was last updated on 2009-12-2.

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