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Winter 2024
ISSN 0890-913X
Volume 39, Number 4

The Political Externalities of Immigration: Evidence from the United States

Zachary Gochenour, James Madison University
Alexander Nowrasteh, Cato Institute
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/index.php?action=ajax&rs=GDMgetPage&rsargs[]=2024 Journal of Private Enterprise Vol 39 No 4 Winter parte4.pdf&rsargs[]=0
Gochenour,ZacharyandAlexanderNowrasteh.2024.ThePoliticalExternalitiesofImmigration:EvidencefromtheUnitedStates.”JournalofPrivateEnterprise,39(4):6781.ThePoliticalExternalitiesofImmigration:EvidencefromtheUnitedStatesZacharyGochenour*JamesMadisonUniversityUnitedStatesofAmericaAlexanderNowrastehCatoInstituteUnitedStatesofAmericaAbstractInastandardmedianvotermodel,low-incomeimmigrationincreasesthesizeofthewelfarestate.Otherresearchsuggestsevidenceforagroupinterestvotermodel,whichpredictsthatwelfarewillshrinkwithanincreaseinlow-incomeimmigration.WecontendthatneithermodelaccuratelydescribespoliticalrealityaftertestingthesetheorieswithUSdatafrom1970to2010.WeuseavarietyofmeasuresforwelfareandrelatedpublicspendingsuchasTemporaryAssistanceforNeedyFamilies,K-12education,andMedicaid.ContrarytoexpectationsfrompreviousworkfocusedonEurope,wefindthattheamountofimmigrant-drivenheterogeneitydoesnothaveasignificanteffectonthesespendingareas,whetherconsideredintotalorpercapitaexpenditure.Thiscouldbebecauseofcountervailingpressuresfromthesetwomodelsofvotermotivationorbecauseoffactorsunrelatedtoimmigration,suchasdifferencesininstitutions.JELCodes:I3,H3,J1Keywords:behavioraleconomics;immigration;redistribution;politicaleconomy;publiceconomicsItisonethingtohavefreeimmigrationtojobs.Itisanotherthingtohavefreeimmigrationtowelfare.Andyoucannothaveboth.MiltonFriedman1*TheauthorswishtothankDonBoudreaux,BryanCaplan,ScottCunningham,MarkKoyama,PeterLeeson,ThomasStratmann,SamWilson,andVipulNaikforhelpfulcommentsandKelleyRanager,PhilKuck,andMichelangeloLandgraveforexcellentresearchassistance.1Friedmanwasanadvocateoffreeimmigrationbutthoughtthatmostimmigrationwasonlygoodsolongasitremainedillegalsincetheseimmigrantswouldnotqualify
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