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Inequality

Is there an optimal immigration policy?

Posted by e-axes on September 17, 2019

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Attitudes towards immigration

Alesina and al. study the relationship between immigration and attitudes toward redistribution using a newly assembled data set of immigrant stocks for 140 regions of 16 Western European. They find that:

  • Native respondents display lower support for redistribution when the share of immigrants in their residence region is higher;
  • This negative association is driven by regions of countries with relatively large Welfare States and by respondents at the center or at the right of the political spectrum.



Immigration and Preferences for Redistribution in Europe
Authors: Alberto Alesina, Elie Murard, Hillel Rapoport
From: Harvard University, IZA, Paris School of Economics

Optimal immigration policy

We study the immigration policy that maximizes the welfare of the native population in an economy where the government designs an optimal redistributive welfare system and supplies public goods. We show that when immigrants can be excluded from the welfare system, free immigration is optimal.  It is also optimal to use the tax system to encourage the immigration of high-skill workers and discourage that of low-skill workers.  When immigrants and natives must be treated alike, it is optimal to ban low-skill immigration and have free immigration for high skill workers. However, high-skill workers may choose not to immigrate when there are heavy taxes levied on all high-skill workers, natives and immigrants alike.

What is the Optimal Immigration Policy? Migration, Jobs and Welfare
Authors: Joao Guerreiro, Sergio Rebelo, Pedro Teles
From: Northwestern University, Banco de Portugal

Immigration policy for economic growth

If a receiving country wished to pursue an immigration policy that maximized long-term growth, therefore, there is little uncertainty about the path that country should follow. It is far from clear, however, that immigration policy should be set solely on the basis of economic considerations.

Immigration and Economic Growth
Author: George J. Borjas
From: Harvard University

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Inequality

Rethinking the Fight Against Inequality

Inequality

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Inequality

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