PhD thesis,

Essays on trade and immigration

.
Harvard University, Ann Arbor, Ph.D., (2003)(ISSP).

Abstract

This dissertation consists of three essays. The first two chapters empirically analyze economic and non-economic determinants of attitudes toward trade and immigration. Two cross-country data sets are used, containing individual-level information on trade and immigration preferences as well as a broad range of socio-demographic and economic characteristics. The first essay (joint with Dani Rodrik) investigates why some people (and countries) are more protectionist than others. We find that pro-trade preferences are significantly and robustly correlated with an individual's level of human capital, in the manner predicted by the factor endowments model. Attitudes toward trade are also correlated with the trade exposure of the sector in which an individual is employed. We find that an individual's relative economic status has a positive association with pro-trade attitudes. Finally, non-economic determinants, in the form of values, identities, and attachments, play an important role in explaining trade preferences. The second essay identifies and investigates a strong empirical regularity concerning the relationship between the level of individual skill and attitudes toward immigrants. I find that individuals with higher levels of skill are more likely to be pro-immigration in high per capita GDP countries and less likely in low per capita GDP countries. Additional results, based on a smaller sample, suggest that this cross-country pattern can be explained in terms of differences in the skill composition of natives relative to immigrants across destination economies. This finding is consistent with the labor-market predictions of the Heckscher-Ohlin model, in the absence of factor-price-insensitivity, and of the factor-proportions-analysis model. Finally, non-economic variables also appear to be correlated with immigration attitudes but they do not seem to alter significantly the results on the economic explanations. The third essay empirically investigates economic and non-economic determinants of migration inflows into fourteen OECD countries by country of origin, between 1980 and 1996. Using an annual panel data set which allows me to exploit both the time-series and cross-country variation in immigrant inflows, I find results broadly consistent with the theoretical predictions. In particular, I find evidence of robust and significant pull effects and of the negative impact on emigration rates of distance between destination and origin country.

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