Paper Menu >>
Journal Menu >>
![]() Open Journal of Political Science 2013. Vol.3, No.4, 143-145 Published Online October 2013 in SciRes (http://www.scirp.org/journal/ojps) http://dx.doi.org/10.4236/ojps.2013.34020 Copyright © 2013 SciRe s . 143 Voter Beliefs, Electoral Concerns and Undocumented Migration Ruxanda Berlinschi1,2, Mara Pasquamaria Squicciarini2,3 1Department of Economics, HUBrussel (HUB), Brussels, Belgium 2LICOS, Centre for Institutions and Economic Performance, Department of Economics, University of Le u ven, Leuven, Belgium 3FWO—Research Foundation Flanders, Brussels, Belgium Email: ruxanda. be rl i ns ch i@hubrussel.be, [email protected] Received July 25th, 2013; revised August 29th, 2013; accepted September 13th, 2013 Copyright © 2013 Ruxanda Berlinschi, Mara Pasquam aria Squicciarini. This is an open access articl e d i st ributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. If voters underestimate the benefits that immigrants bring to their country, policy makers need to cam- paign for suboptimal migration levels in order to win elections. Once in power, they face a trade-off be- tween keeping electoral promises by restricting immigration and stimulating the economy by favoring immigration. One solution to this trade-off may be maintaining high barriers to legal migration, while keeping a blind eye on undocumented migration. Keywords: Immigration; Biased Beliefs; Electoral Concerns Introduction As immigration to Western countries has been increasing in the past decades, its effects on host countries have been ob- served, analyzed and discussed at various levels, from academic journals, to policy reports, press stories and everyday conversa- tions. In these ongoing debates, a gap seems to emerge between the conclusions of scientific studies regarding the effects of immigration and public perceptions of these same effects. Scientific studies give a broadly positive picture of the over- all impact of immigration on the economy and society. Immi- grants are good for the economy because they stimulate innova- tion (Hunt & Gauthier-Loiselle, 2008), productivity (Chellaraj et al., 2008), and growth (Ortega & Peri, 2009). Increasing South-North migration could lead to huge income gains, a sig- nificant part of which would be reaped by host countries (An- derson & Winters, 2008; Clemens, 2011). Immigrants have a small positive impact on public finances (Auerbach & Oreo- poulos, 1999; Lee & Miller, 2000), i.e. on average, their tax contributions exceed the benefits they receive. While immigra- tion does sometimes depress wages of non-qualified workers in destination countries, these effects are small and negligible compared to the overall gains from labor mobility (Friedberg & Hunt, 1995; Card, 2001; Clemens, 2011). Migration does lead to greater religious and cultural heterogeneity in the host coun- try, and while this undermines trust and social solidarity in the short run (Putnam, 2007), it brings social benefits in the long run. Public opinion about immigration is generally less positive, as witnessed by the rise of anti-immigration parties in many Western countries and the consistent presence of immigration among the main public policy concerns in opinion polls1. Peo- ple’s negative attitudes towards migration have two main di- mensions: economic and cultural (Mayda, 2006; Scheve & Slaughter, 2001; O’Rourke & Sinott, 2006). Many natives be- lieve that migrants are stealing their jobs, putting downwards pressure on their wages and abusing the social system. Few natives are aware of immigrants’ positive impact on innovation, trade, entrepreneurship and job creation. Many natives perceive immigrants as a threat to their culture, values and security and are not aware of the long term social benefits of inter-ethnic interaction. This divergence between scientific studies and public opin- ion could be explained by the fact that the benefits of migration are widespread and diffuse, while its costs, such as an incident with a member of a foreign community, are local and concen- trated, and therefore more visible. Moreover, specific negative stories are more likely to catch media and public attention than diffuse medium term benefits (McCluskey & Swinnen, 2004; Swinnen & Heinz, 2013). Policy makers are informed about both academic and public opinion on a certain issue. In order to win elections, they need to promise policies that are appealing to the electorate, i.e. re- stricted immigration. In order to stimulate the economy, they need to implement policies that would bring economic and social benefits, i.e. more open immigration. Elected politicians therefore face the trade-off between being perceived as prom- ise-keeping and being perceived as having stimulated economic growth, both of which affect the probability to be re-elected. One possible solution to this trade-off is to keep restrictions to legal migration and tolerate a certain level of undocumented migration. This solution may work if voters believe that legal migration flows are chosen by the authorities to a larger extent than undocumented migration flows. We formalize this argu- ment with a simple political-economy model. This note contributes to a recent strand of the political econ- omy of migration literature, which hypothesizes that high numbers of undocumented migrants are deliberately tolerated by some governments, for economic, political and electoral 1Ex: Eurobarometer (2006, 2013). ![]() R. BERLINSCHI, M. P. SQUICCIARINI reasons (Hillman & Weiss, 1999; Fasani, 2009; Facchini & Testa, 2010; Berlinschi & Squicciarini, 2011). By focusing on politicians’ electoral concerns as an explanation for illegal im- migration, this paper is closest in line with Facchini and Testa (2010). While in their paper undocumented immigration is driven by voters’ imperfect information about the politician’s type, in our paper it is driven by voters’ imperfect information about the impact of immigration. Theoretical Framework Consider an economy populated by N natives, indexed by i, who elect a politician for implementing a certain migration policy. Migration policy is defined as a couple (M, I) where M is the number of legal and I the number of illegal migrants allowed to participate in the economy. Assume that there exists an optimal total migration level for each voter i, and that for a given total number of migrants, natives’ utility is decreasing with the share of illegal migrants2. We model these assumptions by assigning the following reduced-form utility function t o native i: *0 i M 2 * , ii UMIcMI MI 2 , (1) where c is a constant and 0 0I is the magnitude of the wel- fare loss associated with migrants’ illegal status. This utility function is maximized at and * i M M. Let be the median voter, whose utility function: im 2 * , m UMIc MIMI 2 , (2) is maximized at and 0I* M M. Assume that voters underestimate the migration level which maximizes their utility. This can be modeled by assuming that the anticipated utility of native i, i.e. before migration policy is implemented, is given by: 22 ,, AA ii UMIc MIMI (3) with *A ii M M for all i. Denote by C M median voter’s anticipated optimal migra- tion level with *C M M. Assume that incumbent politicians are judged both on their achievements (voters’ welfare at the end of their mandate) and on their credibility (the extent to which they have kept their electoral promises). Consider the following three-stage game, 1, 2, 3t. In stage 1, elections take place. In this stage, all politicians are challengers competing on migration policies. Under majority voting, the policy winning the political contest will be the one closest to median voter’s preferences, i.e. (MC, 0). In stage 2, the elected politician implements a certain migration policy (M, I) which may differ from the electoral promise (MC, 0). At the end of this stage, voters observe their welfare, as well as the gaps between the electoral promise and the implemented poli- cies, i.e. C M M and I. In stage 3, a second election takes place. In this election the incumbent politician competes with a challenger. The probability for the incumbent to be re-elected depends positively on voters’ welfare and negatively on the gap between electoral promises and implemented policies. Should deviations in legal and undocumented migration in- duce the same credibility loss for the policy maker? We argue that deviations in illegal migration should induce a smaller loss in credibility. While legal migrants have a visa or a residence permit provided by the authorities, undocumented migrants are by definition not allowed to reside in the country. Therefore legal migration flows should be perceived as being a result of authorities’ intention, to a larger extent than undocumented migration flows. We can model these ideas by assuming that the probability for the incumbent to be re-elected is an increasing function of E, where E given by: 22 *2 C Ec MIMIMMI (4) The first three terms of E represent median voter’s welfare at the end of period 2, as a function of implemented migration policies. The last term represents deviations from electoral promises. The term 0 represents the weight of the credi- bility loss on the probability of being re-elected. The term 10 represents the relatively lower cost of deviations in undocumented migration levels. Let us now derive the two endogenous variables of the model, i.e. migration policies implemented in period 2. The policy maker will implement the policies that maximize re-election probability, i.e. he will maximize E with respect to M and I. This simple optimization problem leads to the following result. Result: The migration policy , OO M I implemented by the incumbent politician is given by: 22 11 11 11 OC MM (5) * 2 1. 11 OC I MM (6) In order to maximize re-election probability, the politician should implement a legal migration level O M equal to a con- vex combination between the optimal and campaigned migra- tion levels * M and C M , and a strictly positive illegal migra- tion level . The deviations between promised and imple- mented migration levels arise from voters’ biased beliefs about the impact of migration. From (5) and (6), it is easy to check that if the median voter has correct beliefs about the welfare maximizing policy, then the politician does not deviate from electoral promises and chooses zero undocumented migration, i.e. if O I C* M M, then *OC M MM and 0 O I . From (6), we can also see that if the credibility loss suffered by the politician is the same for deviations in legal and undocumented migration levels, no illegal migration will be induced, i.e. if 1 , then 0 O I . The level of illegal migration is de- creasing in the welfare cost associated with illegality μ and in the credibility parameter O I . Some level of undocumented immigration may thus be inten- tionally tolerated by policy makers when the following condi- tions are satisfied: voters underestimate the optimal number of immigrants for their country, politicians are electorally com- pensated for stimulating the economy and for keeping electoral promises, and undocumented migration is perceived to be less controllable than regular migration. 2This assumption is supported by many public opinion surveys, such as EuroBarometer. Th is may b e due to illegal migrants being employed in the black economy, paying fewer taxes and social security contributions being on average less skilled and considered more likely to engage in criminal activities. Copyright © 2013 SciRe s . 144 ![]() R. BERLINSCHI, M. P. SQUICCIARINI Copyright © 2013 SciRe s . 145 Conclusion Many Western voters seem to underestimate the benefits that immigrants bring to their country. Policy makers concerned with winning elections therefore do not campaign for reducing immigration barriers, even though such policies could bring huge economic benefits according to scientific studies. Once in power, policy makers face the trade-off between stimulating the economy by increasing immigration, and being perceived as keeping electoral promises by restricting immigration. The solution to this trade-off may be maintaining strong barriers to legal migration, while turning a blind eye on undocumented migration. Even though undocumented immigrants may bring fewer economic benefits, as they only work in some specific sectors and pay less taxes, such a strategy may allow policy makers to help some economic sectors and in the same time avoid being perceived as too immigration-friendly, since by definition, undocumented migrants are not allowed to reside in the country. This argument may partly explain why some west- ern governments have been silently allowing hundreds of thou- sands of undocumented migrants to participate in their econo- mies, while keeping strong restrictions on legal migration channels. Acknowledgements We thank A. Ariu, G. De Luca, and J. Fidrmuc for their comments and suggestions. M.P.S. gratefully acknowledges financial support from FWO-Flanders. REFERENCES Anderson, K., & Winters, L. A. (2008). The challenge of reducing international trade and migration barriers. CEPR Discussion Paper 6760. Auerbach, A. J., & Oreopoulos, P. (1999). Analyzing the fiscal impact of US immigration. American Economic Review, 89, 176-180. http://dx.doi.org/10.1257/aer.89.2.176 Berlinschi, R., & Squicciarini, M. P. (2011). On the political economy of illegal immigration. Working paper . Card, D. (2001). Immigrant inflows, native outflows and the local labor market impacts of higher immigration. Journal of Labour Economics, 19, 22-64. http://dx.doi.org/10.1086/209979 Chellaraj, G., Maskus, K. E., & Mattoo, A. (2008). The contribution of skilled immigration and international graduate students to US inno- vation. Review of International Economics, 16, 444-462. http://dx.doi.org/10.1111/j.1467-9396.2007.00714.x Clemens, M. (2011). Economics and emigration: Trillion-dollar bills on the sidewalk? Journal of Economic Perspectives, 25, 83-106. http://dx.doi.org/10.1257/jep.25.3.83 European Commision (2006). Eurobarometer Survey. http://ec.europa.eu/public_opinion/index_en.htm European Commision (2013). Eurobarometer Survey. http://ec.europa.eu/public_opinion/index_en.htm Facchini, G., & Testa, C. (2010). The rhetoric of closed borders: Quo- tas, lax enforcement and illegal migration. NORFACE MIGRA- TION Discussion Paper No. 2010-1. Fasani, F. (2009). Deporting undocumented immigrants. The role of labour demand shocks. Mimeo: University College London. Friedberg, R. M., & Hunt, J. (1995). The impact of immigrants on host country wages, employment and growth. Journal of Economic Per- spectives, 9, 23-44. http://dx.doi.org/10.1257/jep.9.2.23 Hillmann, A. L., & Weiss, A. (1999). A theory of permissible illegal immigration. European Journal of Political Economy, 15, 585-604. http://dx.doi.org/10.1016/S0176-2680(99)00039-7 Hunt, J., & Gauthier-Lauselle, M. (2008). How much does immigration boost innovation? NBE R W orking Paper No. 14312. Lee, R., & Miller, T. (2000). Immigration, social security, and broader fiscal impacts. American Economic Review, 90, 350-354. http://dx.doi.org/10.1257/aer.90.2.350 Mayda, A. M. (2006). Who is against immigration? A cross country investigation of individual attitudes towards immigrants. Review of Economics and Statistics, 88, 510-530. http://dx.doi.org/10.1162/rest.88.3.510 McCluskey, J., & Swinnen, J. (2004). Political economy of the media and consumer perceptions of biotechnology. American Journal of Agricultural Economics, 86, 1230-1237. http://dx.doi.org/10.1111/j.0002-9092.2004.00670.x O’Rourke, K., & Sinnott, R. (2006). The determinants of individual attitudes towards immigration. European Journal of Political Econ- omy, 22, 838-861. http://dx.doi.org/10.1016/j.ejpoleco.2005.10.005 Ortega, F., & Peri, G. (2009) The causes and effects of international labor mobility: Evidence from OECD countries 1980-2005. Human Development Research Paper 6, New York: United Nations Devel- opment Program (UNDP). Putnam, R. (2007). E pluribus unum: Diversity and community in the twenty-first century. Scandinavian Political Studies, 30, 137-174. http://dx.doi.org/10.1016/j.ejpoleco.2005.10.005 Scheve, K. F., & Slaughter, M. J. (2001). Labor-market competition andindividual preferences over immigration policy. Review of Eco- nomics and Statistics, 83, 133-145. http://dx.doi.org/10.1162/003465301750160108 Swinnen, J., & Heinz, M. (2013). Media bias in economic news: A factor 20. LICOS DP 330. |




