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The Grecian horse: does immigration lead to the deterioration of American institutions?

Author

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  • Alexandre Padilla

    () (Metropolitan State University of Denver)

  • Nicolás Cachanosky

    () (Metropolitan State University of Denver)

Abstract

Abstract Concerns about the institutional impact of immigration, particularly in the United States, are not new. We can trace them back to Benjamin Franklin, Thomas Jefferson, and Alexander Hamilton. More recently, in response to a literature that questions the desirability of current immigration restrictions, Borjas (J Econ Lit 53:961–974, 2015) speculates that immigrants coming from countries with poor institutions could reduce substantially the institutional quality in the United States to a point where it could negate all economic gains associated with immigration in terms of GDP and income. Using the Economic Freedom of North America index since 1980, we find no evidence to corroborate Borjas’s concerns. However, we find mixed evidence that immigration increases minimum wages and union density.

Suggested Citation

  • Alexandre Padilla & Nicolás Cachanosky, 2018. "The Grecian horse: does immigration lead to the deterioration of American institutions?," Public Choice, Springer, vol. 174(3), pages 351-405, March.
  • Handle: RePEc:kap:pubcho:v:174:y:2018:i:3:d:10.1007_s11127-018-0509-5
    DOI: 10.1007/s11127-018-0509-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic freedom; Immigration; Institutions; State government;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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