BIBLIOGRAPHY

Publications, working papers, and other research using data resources from IPUMS.

Full Citation

Title: The Labor Market Impact of Undocumented Immigrants: Job Creation vs. Job Competition

Citation Type: Working Paper

Publication Year: 2017

Abstract: This paper presents novel evidence on the effect of legal status on workers labor market outcomes in the US and explores the impact of undocumented immigration in a labor market model featuring search frictions and non-random hiring. Firms receive applications from documented and undocumented workers and hire the worker they can extract the largest surplus from. As undocumented workers have a lower reservation wage due to their ineligibility for unemployment benefits, lower wage bargaining power and risk of being detected and removed, their wages are lower and job finding rates higher, which is consistent with the empirical evidence. An increase in the share of undocumented immigrants leads to the creation of additional jobs, but also more competition for documented job seekers. When calibrated to US data, the job creation effect dominates and undocumented immigration benefits documented workers. An increase in the removal rate mutes job creation and thus lowers the job finding rate of all workers. This detrimental effect is even larger if the removal rate increases more for employed workers (e.g. through worksite raids) because this leads to a risk premium in their wages. Using the introduction of statewide omnibus immigration laws as a measure of increased removal risk, I find evidence for muted job creation and a risk premium in immigrants wages.

Url: https://www.upf.edu/documents/2963149/3253728/The_Labor_Market_Impact_of_Undocumented_Immigrants_Christoph_Albert_April2017.pdf

User Submitted?: No

Authors: Albert, Christoph

Series Title: CESifo Working Paper Series

Publication Number: 6575

Institution:

Pages: 56

Publisher Location: Munich

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Migration and Immigration

Countries:

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