The Causal Effect of Immigration Policies on Income Inequality

Abstract This work evaluates the effect of immigration policies on the income in- equality. The employed methodology has been recently introduced in [10]. It takes into account network interference among units, in the presence of a multi-valued in- dividual treatment. The estimation strategy is based on the usage of a Joint Multiple Generalized Propensity Score, which properly guarantees balance with respect to both individual and network characteristics. Results suggest that a highly restrictive political approach leads to a higher income inequality index.