Does economic self‐interest determine public attitudes toward immigrants? An econometric case study in Japan

Abstract We examine two economic self‐interest hypotheses regarding the determinants of public attitudes toward immigrants: (1) the labor market hypothesis, which states that the employment and wage impacts of immigration determine the public attitudes, and (2) the welfare state hypothesis, which states that natives hold negative perceptions of immigrants due to concerns that they may strain the country's welfare budget. The first hypothesis predicts that natives' education will affect pro‐immigrant attitudes more positively when immigrants come from lower income countries. The second hypothesis predicts that natives' income affects the pro‐immigrant attitudes more negatively when immigrants come from lower income countries. We use the Japanese General Social Survey, which asks respondents' tolerance toward immigrants from different countries, allowing us to control for unobserved individual characteristics through a method akin to the fixed effect estimation. Our results indicate no difference in the effects of education and income on pro‐immigrant attitudes regardless of whether immigrants come from high‐ or low‐income countries. We conclude that economic self‐interest does not explain Japanese public attitudes toward immigrants. We discuss the policy implications about how to improve public attitudes toward immigrants.