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Self-confirming immigration policy

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  • Paolo E. Giordani
  • Michele Ruta

Abstract

We study immigration policy in a small receiving economy under self-selection of migrants. We show that a non-selective immigration policy choice affects and is affected by the migratory decisions of skilled and unskilled foreign workers. From this interaction multiple equilibria may arise, which are driven by the natives’ expectations on the skill composition of migrants. In particular, pessimistic (optimistic) beliefs induce a country to impose higher (lower) barriers to immigration, which worsen (improve) the skill composition of immigrants and thus confirm initial beliefs. This mechanism induces immigration policy to be self-confirming. We discuss how the adoption of a skill-selective policy affects this result.

Suggested Citation

  • Paolo E. Giordani & Michele Ruta, 2016. "Self-confirming immigration policy," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 361-378.
    • Handle: RePEc:oup:oxecpp:v:68:y:2016:i:2:p:361-378.
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    Cited by:

    1. Giordani, Paolo E. & Ruta, Michele, 2013. "Coordination failures in immigration policy," Journal of International Economics, Elsevier, vol. 89(1), pages 55-67.
    2. Dorothea Johanna Baltruks, 2016. "The Complementarity of the Irish and British Liberal Market Economies and Skilled EU Migration Since 2004 Compared to the Swedish Coordinated Market Economy," Journal of International Migration and Integration, Springer, vol. 17(2), pages 507-520, May.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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