Immigration policies, labor complementarities, population size and cultural frictions: Theory and evidence
文摘
In this paper we consider a model of international migration due to Fujita and Weber, with two heterogeneous countries, and show that in equilibrium the larger country attracts more immigrants, while choosing a lower quota. Moreover, a higher degree of labor complementarity and lower degree of cultural friction between natives and immigrants yield a higher immigration quota. We test the empirical validity of the model by using time-series country-level data. Even in the absence of direct evidence of strategic and non-cooperative choice of countries’ immigration quotas, both cross-section and panel data approaches indicate that cross-country immigration patterns are consistent with the majority of our theoretical findings.