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Controlling Migration in an Open Labor Market

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  • Marcel Thum

Abstract

A direct immigration policy is no longer feasible for a single region in a common labor market. Within a political economy approach, this paper focuses on the question of whether migration can be controlled through the composition of government expenditures. Taking into account both capital and labor income, it turns out that the median voter's income is U-shaped in the number of immigrants. Therefore, the government can either provide less of the goods preferred by foreigners in order to minimize immigration or carry out an active immigration policy by shifting its expenditures towards those publicly provided goods. The paper identifies the factors that determine the government's choice between the two strategies.

Suggested Citation

  • Marcel Thum, 2004. "Controlling Migration in an Open Labor Market," Public Choice, Springer, vol. 119(3_4), pages 425-443, June.
    • Handle: RePEc:kap:pubcho:v:119:y:2004:i:3_4:p:425-443
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    Cited by:

    1. Gouranga Gopal Das & Sugata Marjit, 2018. "Skill, Innovation and Wage Inequality: Can Immigrants be the Trump Card?," CESifo Working Paper Series 7082, CESifo.
    2. Benjamin Powell, 2012. "Coyote ugly: the deadweight cost of rent seeking for immigration policy," Public Choice, Springer, vol. 150(1), pages 195-208, January.
    3. Giuseppe Russo, 2011. "Voting over selective immigration policies with immigration aversion," Economics of Governance, Springer, vol. 12(4), pages 325-351, December.
    4. Saibal Kar & Hamid Beladi, 2017. "A Model of Smuggling and Trafficking of Illegal Immigrants with a Host Country Policy," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 698-712, August.
    5. Borella, Sara, 2005. "Political reform from a constitutional economics perspective: a hurdle-race. The case of migration politics in Germany," Freiburg Discussion Papers on Constitutional Economics 05/7, Walter Eucken Institut e.V..
    6. Karin Mayr, 2007. "Immigration and income redistribution: A political economy analysis," Public Choice, Springer, vol. 131(1), pages 101-116, April.
    7. Saibal Kar, 2012. "Migrant Taxes and International Migration Patterns," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(2), pages 231-243, December.
    8. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, February.
    9. Christine Fauvelle-Aymar, 2014. "The welfare state, migration, and voting rights," Public Choice, Springer, vol. 159(1), pages 105-120, April.
    10. Das, Gouranga Gopal & Marjit, Sugata & Kar, Mausumi, 2020. "The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 557-582.

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