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Immigration policy with partisan parties

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  • Humberto Llavador

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  • Angel Solano-García

Abstract

This paper analyzes the political economy of immigration when the salient electoral issue is the level of immigrants and the relevant immigration policy is the expenditure in immigration control. We consider that immigration affects voters’ welfare through economic and non economic factors. We model political competition `a la Wittman with the ideology of parties endogenously determined at equilibrium. At equilibrium, parties propose different levels of immigration, located to the left and to the right of the median voter’s ideal point, and combine skilled and unskilled workers among their constituencies. Numerical simulations provide the levels of immigration proposed by the two parties and the composition of parties’ constituencies as we vary the efficacy of immigration control and the intensity of immigration aversion.

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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1169.

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Date of creation: Aug 2009
Date of revision: Sep 2010
Handle: RePEc:upf:upfgen:1169

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Web page: http://www.econ.upf.edu/

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Keywords: Immigration; ideological parties; unskilled and skilled labor;

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  1. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1996. "Searching for the Effect of Immigration on the Labor Market," NBER Working Papers 5454, National Bureau of Economic Research, Inc.
  2. Mayda, Anna Maria, 2004. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," IZA Discussion Papers 1115, Institute for the Study of Labor (IZA).
  3. De Donder, Philippe & Hindriks, Jean, 2007. "Equilibrium social insurance with policy-motivated parties," European Journal of Political Economy, Elsevier, vol. 23(3), pages 624-640, September.
  4. Christian Dustmann & Ian Preston, 2004. "Is Immigration Good or Bad for the Economy? Analysis of Attitudinal Responses," CReAM Discussion Paper Series 0406, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. 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).
  6. Michael A. Clemens & Claudio E. Montenegro & Lant Pritchett, 2010. "The Place Premium: Wage Differences for Identical Workers across the US Border," Working Papers, University of Chile, Department of Economics wp321, University of Chile, Department of Economics.
  7. Ortega, Francesc, 2009. "Immigration, Citizenship, and the Size of Government," IZA Discussion Papers 4528, Institute for the Study of Labor (IZA).
  8. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Labor Market Competition And Individual Preferences Over Immigration Policy," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 133-145, February.
  9. BARBERA, Salvador & MASCHLER, Michael & SHALEV, Jonathan, 1998. "Voting for voters: a model of electoral evolution," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1998022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Hui He, 2009. "What Drives the Skill Premium: Technological Change or Demographic Variation?," Working Papers, University of Hawaii at Manoa, Department of Economics 200911, University of Hawaii at Manoa, Department of Economics.
  11. Poutvaara, Panu, 2003. " Party Platforms with Endogenous Party Membership," Public Choice, Springer, Springer, vol. 117(1-2), pages 79-98, October.
  12. Ignacio Ortuño Ortín & John E. Roemer, 2000. "Endogenous Party Formation And The Effect Of Income Distribution On Policy," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2000-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  13. Woojin Lee & John E. Roemer, 2005. "The Rise and Fall of Unionised Labour Markets: A Political Economy Approach," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 115(500), pages 28-67, 01.
  14. George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
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Cited by:
  1. Christian Bjørnskov & Niklas Potrafke, 2009. "Political ideology and economic freedom across Canadian provinces," Working Papers CEB, ULB -- Universite Libre de Bruxelles 09-054.RS, ULB -- Universite Libre de Bruxelles.
  2. Spiros Bougheas & Douglas R. Nelson, 2012. "On the Political Economy of High Skilled Migration and International Trade," CESifo Working Paper Series 3880, CESifo Group Munich.
  3. repec:gra:wpaper:13/06 is not listed on IDEAS
  4. Gabriel Romero & Iñigo Iturbe-Ormaetxe Kortajarene, 2013. "Financing public goods and attitudes toward immigration," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2013-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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