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We analyse a model in which a government uses a second-best policy to affect the reallocation of labour, following a change in relative prices. We consider two extreme cases, in which the government has either unlimited or negligible ability to commit to future actions. We explain why the...
Persistent link: https://www.econbiz.de/10005662164
We study the dynamics of optimal trade policy in a model with costly inter-sectoral adjustment of labour, where migrants pay less than the marginal social cost of migration. If workers have rational expectations, a future tariff has an announcement effect on the current migration decision. If...
Persistent link: https://www.econbiz.de/10005791493
immigration from a theoretical and empirical point of view. Our analysis supports the role played by economic channels (labour … and the very low fractions of voters favouring immigration are consistent with the median voter framework. At the same … time, given the extent of individual-level opposition to immigration that appears in the data, it is somewhat puzzling, in …
Persistent link: https://www.econbiz.de/10005124434
While anecdotal evidence suggests that interest groups play a key role in shaping immigration policy, there is no … combining information on the number of temporary work visas with data on lobbying activity associated with immigration. We find … robust evidence that both pro- and anti-immigration interest groups play a statistically significant and economically …
Persistent link: https://www.econbiz.de/10005661629