Why do countries that impose employer sanctions to deter illegal entry of foreign workers nevertheless grant amnesty to illegal immigrants? This paper provides a positive theory of amnesty provision in a model where the constrained optimal immigration reform, involving the joint use of employer...

We study a model where two parties, one from the left and one from the right, compete for position. The election is to be held in the near future and the outcome is uncertain. Prior to the election, the members of both parties nominate their prime ministerial candidates. Investors care about the...