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Love of Variety and Immigration

Author

Listed:
  • Qirjo Dhimitri

    (State University of New York, Plattsburgh, NY, USA Department of Economics and Finance, SUNY Plattsburgh, School of Business and Economics, 329 Au Sable Hall, 101 Broad Street, Plattsburgh, NY 12901, USA)

Abstract
This paper develops a political-economic analysis of immigration in a host country that operates in a direct democracy regime. It shows that, in a monopolistic competitive environment with differentiated capital intensive goods, labor liberalization is more likely to come about in the societies that have more taste for variety. Moreover, in a host country with a strong preference for variety, workers and capital owners may share the same positive stance toward labor liberalization. It follows that the latter is impossible in a perfect competitive environment. Finally, in a dynamic inter-temporal setting with strategic voters, it demonstrates that the median voter is willing to accept fewer immigrants in the first period, in order to preserve her domestic political influence in the next period because of the naturalization of immigrants. In this way, the median voter maximizes her gains from immigration by accepting more immigrants in total.

Suggested Citation

  • Qirjo Dhimitri, 2016. "Love of Variety and Immigration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 901-930, April.
    • Handle: RePEc:bpj:bejeap:v:16:y:2016:i:2:p:901-930:n:14
    DOI: 10.1515/bejeap-2015-0125
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    References listed on IDEAS

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    1. Feld, Lars P. & Kirchgassner, Gebhard, 2000. "Direct democracy, political culture, and the outcome of economic policy: a report on the Swiss experience," European Journal of Political Economy, Elsevier, vol. 16(2), pages 287-306, June.
    2. Fabio Mariani, 2013. "The political economy of naturalization," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 656-688, May.
    3. Sanne Hiller, 2013. "Does immigrant employment matter for export sales? Evidence from Denmark," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 369-394, June.
    4. Dhimitri Qirjo, 2015. "Monitoring, endogenous comparative advantage, and immigration," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    immigration; long-run general equilibrium; direct democracy; perfect competition; monopolistic competition; factor price equalization;
    All these keywords.

    JEL classification:

    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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