Do Interest Groups Affect Immigration?

Giovanni Facchini, Anna Maria Mayda and Prachi Mishra ()
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Prachi Mishra: International Monetary Fund

No 3183, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: While anecdotal evidence suggests that interest groups play a key role in shaping immigration, there is no systematic empirical evidence on this issue. To motivate our analysis, we develop a simple theoretical model where migration policy is the result of the interaction between organized groups with conflicting interests towards labor flows. We evaluate the key predictions of the model using a new, industry-level dataset from the United States that we construct by combining information on the total number of immigrants and H1B visas with data on lobbying expenditures associated with immigration. We find robust evidence that both pro- and anti-immigration interest groups play a statistically significant and economically relevant role in shaping migration across sectors. Barriers to migration are lower in sectors in which business lobbies incur larger lobbying expenditures and higher in sectors where labor unions are more important.

Keywords: immigration policy; interest groups; political economy; immigration (search for similar items in EconPapers)
JEL-codes: F22 J61 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2007-11
New Economics Papers: this item is included in nep-mig and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published - published in: Journal of International Economics, 2011, 85, 114-128

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