In this paper we consider a model of international migration due to Fujita and Weber, with two heterogeneous countries, and show that in equilibrium the larger country attracts more immigrants, while choosing a lower quota. Moreover, a higher degree of labor complementarity and lower degree of cultural friction between natives and immigrants yield a higher immigration quota. We test the empirical validity of the model by using time‐series country‐level data. Even in the absence of direct evidence of strategic and non‐cooperative choice of countries’ immigration quotas, both cross‐section and panel data approaches indicate that cross‐country immigration patterns are consistent with the majority of our theoretical findings.