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Immigration Quotas in the Globalized Economy

Author

Listed:
  • Fujita, M.

    (Konan University, Kobe, Japan, and the Research Institute of Economy, Trade and Industry, Tokyo, Japan)

  • Weber, S.

    (Department of Economics, SMU, USA, and CEPR)

Abstract

We consider a model with two industrialized countries facing a flow of high-skilled immigrants from the "rest of the world". The countries, that choose immigration quotas, differ in degree of labor complementarity between the natives and immigrants, the population size, and level of cultural friction. We show that the total number of immigrants in equilibrium can be excessive, so that coordinated and harmonized immigration policies may improve the welfare of both countries. It is not necessarily true though that both countries would be better off by reducing the number of immigrants. If countries' characteristics are sufficiently diverse, no country could be better off by reducing its immigrant quota, while the other would benefit from a larger number of immigrants.

Suggested Citation

  • Fujita, M. & Weber, S., 2010. "Immigration Quotas in the Globalized Economy," Journal of the New Economic Association, New Economic Association, issue 7, pages 10-23.
  • Handle: RePEc:nea:journl:y:2010:i:7:p:10-23
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    References listed on IDEAS

    as
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    3. Giovanni Facchini & Anna Maria Mayda & Riccardo Puglisi, 2009. "Illegal Immigration and Media Exposure: Evidence on Individual Attitudes," Development Working Papers 285, Centro Studi Luca d'Agliano, University of Milano.
    4. 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).
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    11. Giovanni Facchini & Anna Maria Mayda, 2012. "Individual Attitudes Towards Skilled Migration: An Empirical Analysis Across Countries," The World Economy, Wiley Blackwell, vol. 35(2), pages 183-196, February.
    12. Chi-Chur Chao & Bharat R. Hazari & Jean-Pierre Laffargue, 2008. "A simple theory of the optimal number of immigrants," PSE Working Papers halshs-00586821, HAL.
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    Citations

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    Cited by:

    1. Victor Ginsburgh & Shlomo Weber, 2012. "Culture Languages and Economics," Working Papers ECARES ECARES 2012-009, ULB -- Universite Libre de Bruxelles.

    More about this item

    Keywords

    intra-country heterogeneity; labor complementarity; immigration quota; policy harmonization;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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