Attitudes Towards Immigration: A Trade Theoretic Approach

Sanoussi Bilal, Jean-Marie Grether and Jaime de Melo

Chapter 18 in Developing Countries in the World Economy, 2015, pp 439-453 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The paper uses a three-factor (capital, low- and high-skill labor), two-household (low- and high-skill individuals), two-sector trade model to analyze the determinants of voter attitudes towards immigration under direct democracy, and to identify factors that would be coherent with hoth the observed increase in the skilled-unskilled wage differential and the stiffening attitudes towards low-skill capital-poor immigration. If the import-competing sector is intensive in the use of low-skill labor. and capital is the middle factor, an improvement in the terms of trade or neutral technical progress in the exporting sector leads nationals to oppose immigration of capital-poor low-skill households. An increase in income inequality is also likely to stiffen attitudes towards this type of capital-poor, low-skill immigration prevalent in Europe until recently.

Keywords: Trade Barriers and Market Structure; Quantitative Restrictions; Political Economy and Migration; Trade and the Environment (search for similar items in EconPapers)
Date: 2015
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Journal Article: Attitudes Towards Immigration: a Trade‐Theoretic Approach (2003)
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