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Trading BarriersImmigration and the Remaking of Globalization$
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Margaret E. Peters

Print publication date: 2017

Print ISBN-13: 9780691174488

Published to Princeton Scholarship Online: May 2018

DOI: 10.23943/princeton/9780691174488.001.0001

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Immigration, Trade, and Firm Mobility: A Political Dilemma

Immigration, Trade, and Firm Mobility: A Political Dilemma

(p.15) Chapter 2 Immigration, Trade, and Firm Mobility: A Political Dilemma
Trading Barriers

Margaret E. Peters

Princeton University Press

This chapter argues that trade, firm mobility, and productivity change firms' preferences over immigration and their willingness to support low-skill immigration, which makes it harder for policymakers to support low-skill immigration, leading to restrictions on low-skill immigration. It first considers the political dilemma arising from immigration policy in the face of greater globalization by drawing on both classic Ricardian trade theory and “new” new trade theory before discussing alternative explanations of immigration policy. It argues that trade openness and firm mobility decrease political support for low-skill immigration in wealthy countries. It also examines firms' lobbying for immigration as the foundation of the political dilemma faced by policymakers. Finally, it analyzes the empirical implications of the argument for firms and sectors, policymakers, and immigration policy.

Keywords:   trade, firm mobility, productivity, firms, globalization, low-skill immigration, policymakers, immigration policy, trade openness, lobbying

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