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Self-Confirming Immigration Policy / World Trade Organization.
- Format:
- Book
- Government document
- Author/Creator:
- World Trade Organization.
- Series:
- WTO Working Papers, 25189808 ; no.2012/06.
- WTO Working Papers, 25189808 ; no.2012/06
- Language:
- English
- Subjects (All):
- Economic research and trade policy analysis.
- Local Subjects:
- Economic research and trade policy analysis.
- Physical Description:
- 1 online resource (32 pages).
- Place of Publication:
- Geneva : World Trade Organization, 2012.
- System Details:
- text file
- Summary:
- We study immigration policy in a small receiving economy under self-selection of migrants. We show that a non-discriminatory immigration policy choice affects and is affected by the migratory decisions of skilled and unskilled foreign workers. From this interaction multiple equilibria may arise, which are driven by the natives' expectations on the welfare effects of immigration. In particular, pessimistic (optimistic) beliefs induce a country to impose higher (lower) barriers to immigration, which crowd out (crowd in) skilled migrants and thus confirm initial beliefs. This self-fulfilling mechanism sustains the endogenous formation of an anti or pro-immigration prejudice. We discuss how the adoption of a skill-selective policy affects this result.
- Access Restriction:
- Restricted for use by site license.
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