Migration regulation contagion

This article examines the political economy of selective immigration policy in a model where decision makers are uncertain about the characteristics of migrants. The analysis focuses on two questions: first, how does a selective immigration policy affect the number of immigrants who are admitted by the receiving country; second, how does a selective immigration policy in one country affect immigration policies in other countries. We find (i) that countries with selective immigration policies ceteris paribus tend to admit more migrants than countries without such policies, and (ii) that neighbouring countries will follow each other in implementing selective immigration policies, i.e. there is diffusion. These theoretical findings are supported by evidence from an econometric panel analysis of immigration policies in 15 Organization for Economic Cooperation and Development (OECD) countries in the period from 1980 to 2005.