The screening effects of naturalization costs

Latest version, with Yajna Govind, R&R at Journal of Public Economics

Abstract
We study how changing citizenship costs affect naturalization decisions and the skill composition of naturalized immigrants. We develop a theoretical framework in which benefits from citizenship are heterogeneous and costs vary with skills. We test its predictions in a quasi-experimental setting, exploiting the abolition of compulsory conscription in France as a reduction in the citizenship costs for sons of immigrants. We find that naturalization costs are higher for the low-educated, such that compulsory conscription induced positive selection on education within benefit groups. It also led to positive selection across benefit groups, which, as shown theoretically, is not guaranteed.