Immigration and the Institutions of Freedom

One of the perennial worries about immigration, especially from libertarian/conservative types, is that it will corrode the foundations of a free society. Using the Economic Freedom of the World Index, Clark, Lawson, Nowrasteh, Powell, and Murphy find no evidence for this fear. Countries that accept more immigrants tend if anything to grow in economic freedom:

The economics literature generally finds a positive, but small, gain in income to native-born populations from immigrants and potentially large gains in world incomes. But immigrants can also impact a recipient nation’s institutions. A growing empirical literature supports the importance of strong private property rights, a rule of law, and an environment of economic freedom for promoting long-run prosperity. But little is known about how immigration impacts these institutions. This paper empirically examines how immigration impacts a nation’s policies and institutions. We find no evidence of negative and some evidence of positive impacts in institutional quality as a result of immigration.

The published paper is here.  An ungated version is here.

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