Pricing Immigration

Immigration is highly salient for voters in Europe and the USA and has generated considerable academic debate about the causes of preferences over immigration. This debate centers around the relative influences of sociotropic or personal economic considerations, as well as noneconomic threats. We provide a test of the competing egocentric, sociotropic, and noneconomic paradigms using a novel constrained preference experiment in which respondents are asked to trade off preferred reductions in immigration levels with realistic estimates of the personal or societal costs associated with those reductions. This survey experiment, performed on a national sample of British YouGov panelists, allows us to measure the price-elasticity of the public's preferences with regard to levels of European and non-European immigration. Respondents were willing to admit more immigrants when restriction carries economic costs, with egocentric considerations as important as sociotropic ones. People who voted for the UK to Leave the European Union in the 2016 referendum are less price-elastic than those voting Remain, indicating that noneconomic concerns are also important.