Abstract This article provides a theoretical analysis of host country immigrant demand using the Leviathan model of government. The analysis considers both unskilled and skilled immigrants. A seemingly unrelated regression model tests the implications of the resulting demand
functions. The approach in this model incorporates labor market indicators unlike the limited previous work in this area. Possible non-pecuniary benefits of immigration and numerical limitations on immigrant admissions are also included as factors in the model. Results of the specification
suggest that labor market conditions and non-pecuniary benefits do impact the demand for immigrants. Furthermore, the results show that a total limit on immigration will increase the skill level of the host country.
Robust Bayesian seemingly unrelated regression model
