REFERENDUM-LED IMMIGRATION POLICY IN THE WELFARE STATE

Majority voting outcomes over different immigration levels of lowskilled workers are examined in a two-period overlapping-generation model in which the labour market and intra- and intergenerational transfer schemes translate the impact of immigration into preferences of heterogeneous citizens. In most of the cases being examined, the model predicts a unique policy choice. However, a voting cycle can also arise in certain circumstances, subjecting the referendum outcome to manipulation.