Attitudes towards Immigration in a Highly Multicultural Society: The Roles of Foreign Background and Local Exposure

We study the factors that shape attitudes toward immigration in Luxembourg, a wealthy country with a long history of immigration, where 74\% of the population has a foreign background. Overall, a large majority of respondents acknowledge that immigration enriches national identity and has a positive impact on the economy. These attitudes are shaped by characteristics such as age, education and foreign background. Pro-immigration attitudes are stronger among second-generation immigrants and even more pronounced among first-generation immigrants from Portugal, neighboring and non-European countries. In addition, we find that the total share of immigrants in the immediate neighborhood does not significantly influence attitudes towards the economic and identitarian implications of immigration. However, local exposure to immigration influences natives' perceptions of the optimal level of immigration. We provide suggestive evidence that the latter effect is largely driven by recent inflows of non-European immigrants, indicating that acceptance of diversity and multiculturalism might take time.