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Immigration, Citizenship, and the Size of Government

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  • Ortega Francesc

    (Universitat Pompeu Fabra)

Abstract

I study the political sustainability of the welfare state in an environment where immigration is the main demographic force and where governments choose immigration policy. Voters anticipate their children's prospects of economic mobility and the future political consequences of today's policies. The skill distribution evolves due to intergenerational skill upgrading and immigration. I consider three regimes: permanent migration with citizenship granted by jus soli, permanent migration with jus sanguinis, and temporary migration. The main finding is that under permanent migration and jus soli there exists equilibria where redistribution is sustained indefinitely, despite constant skill upgrading. This is not the case in the other regimes. The crucial insight is that unskilled voters trade-off the lower wages from larger unskilled immigration with the increased political support for redistribution provided by the children of the current immigrants. These mechanisms are relevant for the ongoing debates over comprehensive immigration reform in the U.S, and elsewhere.

Suggested Citation

  • Ortega Francesc, 2010. "Immigration, Citizenship, and the Size of Government," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, March.
    • Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:26
    DOI: 10.2202/1935-1682.2324
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    1. Francesc Ortega & Giovanni Peri, 2009. "The Causes and Effects of International Migrations: Evidence from OECD Countries 1980-2005," NBER Working Papers 14833, National Bureau of Economic Research, Inc.
    2. Roland Benabou & Efe A. Ok, 2001. "Social Mobility and the Demand for Redistribution: The Poum Hypothesis," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 447-487.
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    17. 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.
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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I2 - Health, Education, and Welfare - - Education
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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