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Title: Do Interest Groups affect Immgration?

Citation Type: Miscellaneous

Publication Year: 2007

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Abstract: While anecdotal evidence suggests that interest groups play a key role in shaping immigration, there is no systematic empirical evidence on this issue. The paper starts by developing a stylized theoretical model in which migration policy is the result of the interaction between organized groups with conflicting interests towards labor laws. Ceteris paribus, in equilibrium, migration policy is more open the larger are the contributions paid by the pro-migration groups relative to the anti-migration ones. Next, the paper evaluates the key predictions of the model using a unique, U.S. industry-level dataset that combines information on the number of immigrants with data on the political activities of organized groups, both in favor and against an increase in migration. The main result is that both pro- and anti-immigration interest groups play a statistically significant and economically relevant role in shaping migration across sectors. Barriers to migration are higher in sectors where labor unions are more important, and lower in those sectors in which business lobbies are more active. The results are robust to the introduction, in the estimating equation, of a number of industry-level control variables and to addressing endogeneity issues with an IV estimation strategy.

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Authors: Mishra, Prachi; Mayda, Anna M.; Facchini, Giovanni

Publisher: World Bank

Data Collections: IPUMS CPS

Topics: Migration and Immigration, Other

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