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Can Unions Hurt Workers? A Positive Analysis Of Immigration Policy




This paper studies the determinants of immigration policy in an economy with entrepreneurs and workers where a trade union has market power over wages. The presence of the union induces a social welfare maximizing government to implement a high level of immigration, leading to a welfare loss not only from an aggregate point of view but also from the workers' point of view. When interest group politics prevails and workers' ability to influence the policy-maker is strengthened by existence of the union, we show the conditions under which workers may benefit from the presence of the union. Copyright 2007 Blackwell Publishing Ltd..

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  • Giorgio Bellettini & Carlotta Berti Ceroni, 2008. "Can Unions Hurt Workers? A Positive Analysis Of Immigration Policy," Economics and Politics, Wiley Blackwell, vol. 20(1), pages 106-124, March.
  • Handle: RePEc:bla:ecopol:v:20:y:2008:i:1:p:106-124

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    References listed on IDEAS

    1. Kemnitz, Alexander, 2008. "Can immigrant employment alleviate the demographic burden? The role of union centralization," Economics Letters, Elsevier, vol. 99(1), pages 123-126, April.
    2. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants Across Countries," Working Papers gueconwpa~06-06-02, Georgetown University, Department of Economics.
    3. Timothy J. Hatton & Jeffrey G. Williamson, 2005. "A Dual Policy Paradox: Why Have Trade and Immigration Policies Always Differed in Labor-Scarce Economies," NBER Working Papers 11866, National Bureau of Economic Research, Inc.
    4. Gordon H. Hanson & Kenneth Scheve & Matthew J. Slaughter, 2007. "Public Finance And Individual Preferences Over Globalization Strategies," Economics and Politics, Wiley Blackwell, vol. 19(1), pages 1-33, March.
    5. Hanson, Gordon H., 2005. "Why Does Immigration Divide America? Public Finance and Political Opposition to Open Borders," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4000.
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    Cited by:

    1. Bertrand CRETTEZ, 2011. "Is Selling Immigration Rights Politically Sustainable ?," Discussion Papers (REL - Recherches Economiques de Louvain) 2011042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2007. "Do Interest Groups Affect Immigration?," IZA Discussion Papers 3183, Institute for the Study of Labor (IZA).
    3. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.

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