Occupation-specific immigration quotas in political equilibrium
Immigration policies are generally protectionist, yet positive immigration quotas often exist for workers in speci c occupations where the native labor supply is scarce. This paper determines occupation-speci c immigration quotas in a political economy framework with endogenous prices and compares them to the social optimum. It shows that positive quotas for speci c occupations can be the political outcome, even when total welfare e ects of immigration are negative. Two of the main ndings are that the (unique) voting outcome on immigration quotas is i) positive, if workers are immobile across occupations, and ii) negative (positive) for occupations where the native labor supply is suciently large (small), if workers are mobile across occupations.
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