Destination countries are progressively shifting towards selective immigration policies. These can effectively increase … selective immigration policies reduce social welfare at origin …

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 …