Attitudes Towards Immigration: A Trade-Theoretic Approach

15 Pages Posted: 6 Jun 2003

See all articles by Sanoussi Bilal

Sanoussi Bilal

European Centre for Development Policy Management (ECDPM)

Jean-Marie Grether

University of Neuchatel - Institute for Economic and Regional Research (IRER)

Jaime de Melo

University of Geneva - Department of Political Economics; Centre for Economic Policy Research (CEPR); World Bank

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 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 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.

Suggested Citation

Bilal, Sanoussi and Grether, Jean-Marie and de Melo, Jaime, Attitudes Towards Immigration: A Trade-Theoretic Approach. Available at SSRN: https://ssrn.com/abstract=411324

Sanoussi Bilal (Contact Author)

European Centre for Development Policy Management (ECDPM) ( email )

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Jean-Marie Grether

University of Neuchatel - Institute for Economic and Regional Research (IRER) ( email )

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Jaime De Melo

University of Geneva - Department of Political Economics ( email )

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HOME PAGE: http://www.unige.ch/ses/ecopo/demelo/Jaime.html

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

World Bank ( email )

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Washington, DC 20433
United States

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