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This article provides a simple framework for studying migrants’ incentives to acquire country-specific skills and proposes an optimal immigration policy from the host country’s point of view. The article focuses on the optimal cultural composition of migrants. It shows that as long as the integration costs are not too asymmetric among migrants of different countries of origin, cultural heterogeneity is beneficial to the host economy. To some extent, the model explains why immigration policies have changed over time and why they still differ across countries.

Migrants’ acquisition of cultural skills and selective immigration policies