Giovanni Facchini

• Erasmus University Rotterdam

We review the literature on the effects of the 1965 Voting Rights Act (VRA), which removed formal restrictions to Black political participation. After a brief description of racial discrimination suffered by Black Americans since Reconstruction, we introduce the goals that the VRA was meant to achieve. Next, we discuss the local level impact of the...

The 1965 Immigration Act represented a radical shift in U.S. policy, which has been credited with dramatically expanding the volume and changing the composition of immigration. Its passing has often been described as the result of political machinations negotiated within Congress without regard to public opinion. We show that congressional voting w...

Economic incentives play a key role in the decision to run for office, but little is known on how they shape immigrants' self‐selection into candidacy. We study this question using a two‐period Roy model, and show that if returns to labour market experience differ between migrants and natives, then this will affect the relative likelihood to run fo...

Is opposition to immigration deeply entrenched or is it open to updating in the face of new information? We explore this question by examining how attitudes of native citizens shift following exposure to information that points to potential upsides of immigration. We do so using a large-scale randomized experiment embedded in a text-comprehension s...

We develop a political economy model to study the decision of representative democracies to join a preferential trading agreement (PTA), distinguishing between free trade areas (FTA) and customs unions (CU). Our theoretical analysis shows that bilateral trade imbalances and income inequality are important factors determining the formation of PTAs,...

Governments do not always enforce their laws, even when they have the means of doing so, and lax enforcement is common in the domain of immigration policy. To explain this paradox we develop a political agency model where gains from migration are unevenly distributed, and an elected government chooses both quotas and their enforcement. We show that...

We compare the drivers of U.S. congressmen's votes on trade and migration reforms since the 1970s. Standard trade theory suggests that trade reforms that lower barriers to goods from less skilled‐labor abundant countries and migration reforms that lower barriers to low‐skilled migrants should have similar distributional effects, hurting low‐skilled...

We analyze the effect of China's integration into the world economy on workers in the country and show that one important channel of impact has been internal migration. Specifically, we study the changes in internal migration rates triggered by the reduction in trade policy uncertainty faced by Chinese exporters in the U.S. This reduction is charac...

We develop a model to understand the trade–offs faced by an elected representative in supporting an amnesty when a restrictive immigration policy is in place. We show that an amnesty is more desirable the more restricted are the occupational opportunities of undocumented immigrants and the smaller is the fiscal leakage to undocumented immigrants vi...

We develop a model to understand the trade offs faced by an elected representative in supporting an amnesty when a restrictive immigration policy is in place. We show that an amnesty is more desirable the more restricted are the occupational opportunities of undocumented immigrants and the smaller is the fiscal leakage to undocumented immigrants vi...

Illegal immigration has been the focus of much debate in receiving countries, but little is known about the drivers of individual attitudes towards illegal immigrants. To study this question, we use the CCES survey, which was carried out in 2006 in the USA. We find evidence that—in addition to standard labor market and welfare state considerations—...

During the last decade unicameral proposals have been put forward in fourteen US states. In this paper we analyze the effects of the proposed constitutional reforms, in a setting where decision making is subject to ‘hard time constraints’, and lawmakers face the opposing interests of a lobby and the electorate. We show that bicameralism might lead...

Immigration is on the rise in recent decades. In this article, we first provide an overview of the recent evolution of global migration flows. We then analyze the main drivers of international migration, and how they have changed over time. Finally, we review the theoretical and empirical findings of the growing literature that analyzes the economi...

Empirical evidence suggests that exporters – besides being more productive – are significantly more skilled labor intensive than non–exporters. In a setting which captures both these features, we show that the firm selection induced by trade liberalization works along two dimensions. First, export growth increases competition for skilled labor. Thi...

The combination of increasing immigration pressures and restrictive policies imperfectly enforced by many destination countries has made illegal immigration widespread. This article provides an overview of the mechanisms behind the formation of migration policies and how they lead to or limit the presence of illegal immigrants. We also study how go...

This paper shows that electoral incentives deter politicians from supporting trade liberalization. We focus on all major trade liberalization bills introduced since the early 1970s in the U.S. Congress, in which House and Senate members serve respectively two- and six-year terms and one third of senators face elections every two years. We show that...

The number of preferential trade agreements has greatly increased over the past two decades, yet most existing arrangements take the form of free trade areas, and less than 10% can be considered to be fully fledged customs unions. This paper develops a political economy model of trade policy under imperfect competition to provide a positive explana...

Using census data for 1996, 2001, and 2007; we study the labor market effect of immigration to South Africa. The paper contributes to a small but growing literature on the impact of South-South migration by looking at one of the most attractive destinations for migrant workers in Sub-Saharan Africa. We exploit the variation – both at the district l...

This paper uses plant level data from Chile to show that an increase in sector-wide exports decreases the survival probability of exporters, but not that of non-exporters. We argue that this result can be explained by the fact that exporters and non-exporters use factors of production in different intensities.

We investigate the role of constituents’ preferences in shaping the voting behavior of elected representatives on immigration and trade policy. Using a novel dataset spanning the period 1986-2004, in which we match individual opinion surveys with congressmen roll call votes, we find that greater exposure to media coverage tends to increase a politi...

Over the last decades, the United States has become increasingly integrated in the world economy. Very low trade barriers and comparatively liberal migration policies have made these developments possible. What drove US congressmen to support the recent wave of globalization? While much of the literature has emphasized the differences that exist be...

We develop a general model of legal and illegal immigration to understand the basic tradeoffs faced by a government in the decision to implement an immigration amnesty in the presence of a selective immigration policy. We show that two channels play an important role: an amnesty is more likely the more restricted are the occupational opportunities...

Abstract We study how the sequential formation of free trade areas affects trade flows between member countries. In a three-country, three-good model of comparative advantage if two countries have an FTA, and both sign a similar agreement with the third, trade between the two decreases. However, if only one of them signs an additional FTA, a hub- a...

This chapter analyses the drivers of individual attitudes towards skilled immigration, looking at how preferences towards overall and skilled immigration change depending on the relative skill composition of the native vs. immigrant population. The chapter finds that more educated natives are less likely to favour high educational qualifications of...

It is likely that countries which have so far played only a limited role in the Battle for Brains will shift towards the adoption of selective immigration policies, as these can effectively influence the scale and composition of migration flows. This chapter contributes to a better understanding of how the capacity to attract talented immigrants is...

The goal of this chapter is to analyse how geographical, legal, institutional, and economic factors affect the scale of immigration and the skill composition of the immigrant population. A multivariate analysis allows the isolation of the effects of different immigration policies. Focusing on the receiving countries, it is found that the wage premi...

This chapter provides a brief overview of skill-selective immigration policies in the main destination countries and of the major shifts in these policies that have been recently observed. First, it outlines the main approaches to selecting highly skilled immigrants. Second, it describes the main features of these approaches in countries which have...

This chapter examines the impact of the immigration of highly educated workers on employment, productivity, and capital accumulation in the recipient countries, to see whether the presumed positive impact of highly educated immigrants is actually confirmed by aggregate data analysis. The chapter identifies a robust and significant positive effect o...

This chapter provides an overview of highly skilled migration into developed countries. In particular, it looks at the balance of highly skilled migration within the OECD and between the OECD countries and other countries of the world. Thanks to recent progress in data collection on migrants' educational attainments, the chapter outlines the skill...

We study the migration policy set by a welfare maximizing government in a model where immigrant workers differ in their skills and are imperfectly matched with heterogenous occupations. The policy fixes a minimum skill level for legal migrants, and foreign workers that fall below it can only enter the country illegally. We start by analyzing under...

We study the migration policy set by a welfare maximizing government in a model where immigrant workers differ in their skills and are imperfectly matched with heterogenous occupations. The policy fixes a minimum skill level for legal migrants, and foreign workers that fall below it can only enter the country illegally. We start by analyzing under...

Using census data for 1996, 2001 and 2007 we study the labor market effect of immigration in South Africa. In this period the share of foreign born over the total population has grown by almost fifty percent, and both the characteristics and geographical distribution of immigrants show substantial variation over time. We exploit these features of t...

This paper empirically investigates the determinants of individual attitudes towards immigration in South Africa using the 1996, 2001 and 2007 rounds of the World Value Survey. The main question we want to answer is whether South African public opinion on migration is affected by the potential labor market competition of migrants towards natives. W...

In congestion games, players use facilities from a common pool. The benefit that a player derives from using a facility depends, possibly among other things, on the number of users of this facility. The paper gives an easy alternative proof of the isomorphism between exact potential games and the set of congestion games introduced by Rosenthal (197...

Empirical evidence suggests that sectoral export growth decreases exporters’ survival probability, whereas non-exporters are unaffected. Models with firm heterogeneity in total factor productivity predict the opposite. To solve this puzzle, we develop a two-factor framework where firms differ in factor shares. In this model, export growth increases...

Immigration is today one of the most hotly debated policy issues in the United States. Despite marked divergence of opinion even within political parties, several important reforms have been introduced in the post 1965 era. The purpose of this paper is to carry out a systematic analysis of the drivers of the voting behavior of US representatives on...

Despite restrictive migration policies, large numbers of undocumented migrants reside in many destination countries. If official migration targets are not enforced, why are they devised? To address this puzzle, we develop a political agency model with uncertainty on the migrants' supply, where an elected official can either have preferences congrue...

We analyze a newly available dataset of migration policy decisions reported by governments to the United Nations Department of Economic and Social Affairs between 1976 and 2007. We find evidence indicating that most governments have policies aimed at either maintaining the status quo or at lowering the level of migration. We also document variation...

In2008,approximately 12 million immigrants lived illegally in the United States,and large numbers of undocumented foreigners resided also in other advanced destination countries. Hence, attempts at controlling immigration flows seem to often fail. If governments are not enforcing their “official” immigration policy, why do they set such a policy in...

Understanding what drives individual preferences towards immigration is an im-portant research question, both for the purpose of carrying out descriptive political economy analysis, as well as to design actual policies in a democratic society. There is much debate in the existing literature on the role played by both economic and non-economic deter...

This paper investigates the relation between policymakers ’ term length and their willingness to support economic reforms. We describe a model in which office-motivated legislators have mandates of different length and consider the introduction of a trade liberalization reform, which gives rise to distributional effects that only become known over...

Party polarization is widely considered a pervasive but negative feature of mod-ern democracies because it undercuts the voice of the majority to the advantage of a minority in the policy making process. In this paper we show that political polarization, despite its costs, also provides some important benefits to the median voter. Modelling the int...

Illegal immigration has been the focus of much debate in receiving countries, but little is known about what drives individual attitudes towards illegal immigrants. To study this question, we use the CCES survey, which was carried out in 2006 in the United States. We find evidence that - in addition to standard labor market and welfare state consid...

It is commonly argued that skilled immigration benefits the destination country through several channels. Yet, only a small group of countries reports to have policies in place aimed at increasing the intake of skilled immigrants. Why? In this paper we analyze the factors that affect a direct measure of individual attitudes towards skilled migratio...

Illegal immigration has been the focus of much debate in receiving countries, but little is known about what drives individual attitudes towards illegal immigrants. To study this question, we use the CCES survey, which was carried out in 2006 in the United States. We find evidence that – in addition to standard labor market and welfare state consid...

During the last decade unicameral proposals have been put forward in fourteen US states. In this paper we propose a theoretical framework casting some lights on the drawbacks of bicameral state legislatures and on the effects of the proposed constitutional reforms. In a setting where lawmakers interact with a lobby through a bargaining process and...

We develop an endogenous growth model with R&D spillovers to study the long-run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm's production chain between a home upstream division and a foreign downstream division. While there is always a posit...

We develop an endogenous growth model with R&D spillovers to study the long-run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm's production chain between a home upstream division and a foreign downstream division. While there is always a posit...

While anecdotal evidence suggests that interest groups play a key role in shaping immigration policy, there is no systematic empirical analysis of this issue. In this paper, we construct an industry-level dataset for the United States, by combining information on the number of temporary work visas with data on lobbying activity associated with immi...

The number of preferential trade agreements has greatly increased over the past two decades, yet most existing bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged customs unions. This paper develops a political economy model of trade policy under imperfect competition to provide...

We are experiencing a wave of globalization that includes everything but labour. In this paper, we argue that this is the result of restrictive migration policies implemented by destination countries. In democratic societies individual attitudes of voters represent the foundations of policy making. To understand policy outcomes, we analyse the patt...

This paper develops a theory of the endogenous formation of a common market in a three-country, two-factor political economy model. In the status quo, Home and Foreign implement non-discriminatory policies towards international factor flows, as to maximize the domestic median voter's welfare. Each of the two countries simultaneously holds then a re...

This paper develops a simple two-period model of public good provision within a federation. A national public good is provided to both states by the federal government, while a local public good is supplied by each state government. The federal government levies a proportional income tax, and in each period the state governments receive a share of...

Fast Track Authority (FTA) is the institutional procedure in the Unites States whereby Congress grants to the President the power to negotiate international trade agreements. Under FTA, Congress can only approve or reject negotiated trade deals, with no possibility of amending them. In this paper, we examine the determinants of FTA voting decisions...

The dual track approach to market liberalization has been widely recognized as the key to the success of the Chinese economic reform. In this paper we study the effectiveness of this strategy in economic environments where the status quo government control is incomplete. We show that in a dynamic context contractual arbitrage will emerge, potential...

While anecdotal evidence suggests that interest groups play a key role in shaping immigration, there is no systematic empirical evidence on this issue. The paper starts by developing a stylized theoretical model in which migration policy is the result of the interaction between organized groups with conflicting interests towards labor flows. Ceteri...

This paper analyzes welfare-state determinants of individual attitudes toward immigrants-within and across countries-and their interaction with labor market drivers of preferences. We consider two mechanisms through which a redistributive welfare system might adjust as a result of immigration. Under the first model, immigration has a larger impact...

This article examines the trade policy response of Latin American governments to the rapid growth of Chinese and Indian exports in world markets. To explain more protection in sectors where a large share of imports originates in China and India, the “protection for sale” model is extended to allow for region-specific degrees of substitutability bet...

This paper analyzes how the sequential formation of free trade areas affects the volume of trade between member countries. In a three--country, three--good model, if two countries have a free trade area, and both sign a similar agreement with the third, trade between the two decreases, and welfare rises in both. However, if only one of them signs a...

Grossman and Helpman (1994) explain tariffs as the outcome of a lobbying process. In most empirical implementations of this framework protection is instead measured using non-tariff barriers. Since tariffs allow the government to fully capture the rents from protection, while non-tariff barriers do not, the existing parameter estimates of the prote...

This paper analyzes welfare-state determinants of individual attitudes towards immigrants - within and across countries - and their interaction with labor-market drivers of preferences. We consider two different mechanisms through which a redistributive welfare system might adjust as a result of immigration. Under the first scenario, immigration ha...

The Common European Asylum System calls for increased coordination of the EU countries' policies towards asylum seekers and refugees. In this paper, we provide a formal analysis of the effects of coordination, explicitly modelling the democratic process through which policy is determined. In a symmetric, two-country citizen-candidate setup, in whic...

We model the role of a parliament’s structure in shaping the accountability of elected representatives. In a setting in which lawmakers interact with a lobby through a bargaining process and with voters by means of elections, we show that only a single legislative body who can make take it or leave it offers to the lobby can be held unambiguously a...

This paper develops a theory of the endogenous formation of a common market in a three–country, two–factor political economy model. Ex ante policies in each of the prospective members are the result of majority voting, and equilibrium outcomes may include both import restrictions as well as subsidies. The decision to participate in the integration...

This paper studies the relationship between industrial structure and the extent of trade protection granted to Brazilian manufacturing industries during the 1988–1994 trade liberalization episode. Using a panel data-set covering this period, we find that even in an environment in which a major regime shift has been introduced, more concentrated sec...

The success of the Chinese economic reforms has been linked by many observers to the implementation of a dual track liberalization mechanism. This approach, relying upon the continued enforcement of existing contracts and the simultaneous creation of a free market sector, represents a powerful mechanism in economic reform. If not anticipated, it im...

Free trade in goods and factors is efficient. When we move away from economic theory and consider the policies actually followed by governments, we observe distortions being implemented both on goods and factors trades. It is natural then to question the relative merits of the two types of intervention, and the normative literature has provided onl...

We model the endogenous determination of policy towards international factor mobility. In a common agency setting, domestic interest groups bid for protection from the government and the incumbent politicians maximize a welfare function that depends both on domestic voters' welfare and contributions collected. We characterize equilibrium policies i...

This paper analyzes the interaction between the welfare state and immigration policy. We establish a negative relationship between the number of dependents and the extent of the welfare state due to the leakage of benefits. We also explain the determination of immigration policy as the outcome of a lobbying game between domestic interest groups and...