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Too Many Migrants, Too Few Services: A Model of Decision-making on Immigration and Integration with Cultural Distance

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  • Harrie A. A Verbon
  • Lex Meijdam

Abstract

In this paper we model the demand for immigrants as a trade-off native voters face between having services, produced by unskilled and non-assimilated immigrants, and experiencing disutility due to the immigrant workers having a culture different from the native culture. Immigrants decide whether to integrate into the native culture. If they don’t, they produce services. Assimilated immigrants take on skilled jobs. At the political level natives choose the number of immigrants that can be allowed, given some fixed price for services. We show that, at the assumed price, it is never optimal for natives to have equilibrium or unemployment in the service sector. Market forces then lead to higher service prices, implying that the initially allowed number of immigrants is too large.

Suggested Citation

  • Harrie A. A Verbon & Lex Meijdam, 2004. "Too Many Migrants, Too Few Services: A Model of Decision-making on Immigration and Integration with Cultural Distance," CESifo Working Paper Series 1268, CESifo.
    • Handle: RePEc:ces:ceswps:_1268
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    References listed on IDEAS

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    1. Anna Maria Mayda, 2006. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 510-530, August.
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    Citations

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    Cited by:

    1. Junko Doi & Laixun Zhao, 2012. "Immigration Conflicts," Discussion Paper Series DP2012-29, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2012.
    2. Franco Mariuzzo & Patrick Paul Walsh & Ciara Whelan, 2004. "EU Merger Control in Differentiated Product Industries," CESifo Working Paper Series 1312, CESifo.
    3. Lena Calahorrano & Oliver Lorz, 2011. "Aging, Factor Returns, and Immigration Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(5), pages 589-606, November.
    4. Julia Beckhusen & Raymond J.G.M. Florax & Thomas Graaff & Jacques Poot & Brigitte Waldorf, 2013. "Living and working in ethnic enclaves: English Language proficiency of immigrants in US metropolitan areas," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 305-328, June.
    5. Beckhusen, Julia & Florax, Raymond J.G.M. & de Graaff, Thomas & Poot, Jacques & Waldorf, Brigitte, 2012. "Living and Working in Ethnic Enclaves: Language Proficiency of Immigrants in U.S. Metropolitan Areas," IZA Discussion Papers 6363, Institute of Labor Economics (IZA).
    6. Natasha T. Duncan & Brigitte S. Waldorf, 2008. "Immigrant Assimilation:Do Neighborhoods Matter?," Working Papers 08-13, Purdue University, College of Agriculture, Department of Agricultural Economics.
    7. Duncan, Natasha T. & Waldorf, Brigitte S., 2008. "Immigrant Assimilation: Do Neighborhoods Matter?," Working papers 46026, Purdue University, Department of Agricultural Economics.

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    More about this item

    JEL classification:

    • 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

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