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Occupation-specific immigration quotas in political equilibrium

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Abstract

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.

Suggested Citation

  • Karin Mayr, 2012. "Occupation-specific immigration quotas in political equilibrium," Vienna Economics Papers 1207, University of Vienna, Department of Economics.
  • Handle: RePEc:vie:viennp:1207
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    References listed on IDEAS

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    1. Zachariadis, Marios, 2012. "Immigration and international prices," Journal of International Economics, Elsevier, vol. 87(2), pages 298-311.
    2. Giovanni Facchini & Anna Maria Mayda, 2008. "From individual attitudes towards migrants to migration policy outcomes: Theory and evidence," Economic Policy, CEPR;CES;MSH, vol. 23, pages 651-713, October.
    3. Anna Maria Mayda, 2006. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 510-530, August.
    4. Hillman, Arye L. & Weiss, Avi, 1999. "A theory of permissible illegal immigration," European Journal of Political Economy, Elsevier, vol. 15(4), pages 585-604, November.
    5. Dixit Avinash & Rob Rafael, 1994. "Switching Costs and Sectoral Adjustments in General Equilibrium with Uninsured Risk," Journal of Economic Theory, Elsevier, vol. 62(1), pages 48-69, February.
    6. Tommaso Frattini, 2012. "Immigrazione," Rivista di Politica Economica, SIPI Spa, issue 3, pages 363-407, July-Sept.
    7. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2012. "Comment: On Estimating Elasticities Of Substition," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 198-210, February.
    8. Ortega, Francesc, 2005. "Immigration quotas and skill upgrading," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1841-1863, September.
    9. Paul W. Miller, 1999. "Immigration Policy and Immigrant Quality: The Australian Points System," American Economic Review, American Economic Association, vol. 89(2), pages 192-197, May.
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    Cited by:

    1. Inaam Chaabane & Damien Gaumont, 2015. "An alternative model of international migration: endogenous two sided borders and optimal legal systems," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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