Italy: Immigration and the evolution of populism

We study the effect of immigration on the upsurge of right-wing populism in Italy. Our data considers electoral results at the municipality level of the Senate of the Italian Republic and the Chamber of Deputies over the period 2006-2018. Using an IV strategy based on the shift-share instrument, we find that immigration generates a sizable causal increase in votes for the right-wing populist party Lega. Immigration also works as a major catalyst for the electoral distance between Lega and its most direct competitors. We explore how different levels of tax autonomy impact the results, as well as how the re-branding of Lega as a national movement affects the relation between immigration and support for the party.