The Political Effects of Immigration: Culture or Economics?

We review the growing literature on the political economy of immigration. First, we discuss the effects of immigration on a wide range of political and social outcomes. The existing evidence suggests that immigrants often, but not always, trigger backlash, increasing support for anti-immigrant parties and lowering preferences for redistribution and diversity among natives. Next, we unpack the channels behind the political effects of immigration. While completely separating economic from non-economic forces is impossible, we conclude that the latter are more important than the former. In examining the mechanisms, we highlight mediating factors -- such as (mis-)perceptions, the media, and the conditions under which inter-group contact occurs -- that can influence natives' reactions in different directions. Throughout the review, we outline promising avenues for future research.