Immigration and inequality: the role of politics and policies

Abstract

Abstract This commentary examines the relationship between immigration and economic inequality, focusing on the role of politics and policies. The main argument is that although the direct economic effects of immigration on native employment and wages may be minor, immigration can have significant indirect economic ramifications through political channels. We summarize existing evidence and discuss how immigration shapes politics and policies by influencing political discourse, voters, and parties. Notably, the rise of anti-immigrant parties can lead to shifts both in immigration and integration policy, and in other policy areas, such as law and order, social security, and international relations. These shifts have the potential to affect inequality across different segments of society, including between immigrants and citizens and along gender and employment dimensions. However, due to the scarcity of empirical evidence, predictions about the consequences of immigration on inequality across these groups are uncertain and further research is needed.