Determinants of Attitudes Towards Immigration: A Trade-Theoretic Approach

Jaime de Melo and Charles Ettinger

No 1877, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 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 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.

Keywords: direct democracy; Immigration; Trade Theory (search for similar items in EconPapers)
JEL-codes: D72 F22 J61 (search for similar items in EconPapers)
Date: 1998-05
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Citations: View citations in EconPapers (7)

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Working Paper: Determinants of Attitudes Towards Immigration: a Trade-Theoretic Approach (1998)
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