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Determinants of Attitudes Towards Immigration: a Trade-Theoretic Approach

Jaime Melo de, Bilal and Jean-Marie Grether
Authors registered in the RePEc Author Service: Jaime de Melo ()

No 199805, Working Papers from CERDI

Abstract: This paper uses a three-factor (capital, low and high-skill labour), two-household (low and high skill individuals), two-sector trade model to analyse the determinants of voter attitudes towards immigration under direct democracy and identify factors that would be coherent with both the observed increase in the skilled-unskilled walye differential and the stiffening attitudes towards low-skill capital-poor immigration. If the import-competing sector is intensive in the use of low- skill labour, 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.

Pages: 37
Date: 1998
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