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Labor Market Interactions Between Legal and Illegal Immigrants

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  • Gil S. Epstein

Abstract

The paper looks at the situation of legal immigrants who employ illegal immigrants for various services. This enables the legal immigrants to allocate more time to other work, thereby increasing their earnings. Illegal immigrants employed by legal immigrants may specialize in certain professions and may themselves employ other illegal immigrants. A subeconomy evolves whose sole purpose is the provision of services by illegal immigrants for legal immigrants.

Suggested Citation

  • Gil S. Epstein, 2003. "Labor Market Interactions Between Legal and Illegal Immigrants," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 30-43, February.
    • Handle: RePEc:bla:rdevec:v:7:y:2003:i:1:p:30-43
    DOI: 10.1111/1467-9361.00173
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    References listed on IDEAS

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    1. Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
    2. Avi Weiss & Arye L. Hillman & Gil S. Epstein, 1999. "Creating illegal immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 3-21.
    3. Chiswick, Barry R & Miller, Paul M, 1996. "Ethnic Networks and Language Proficiency among Immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(1), pages 19-35, February.
    4. Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-345, May.
    5. Ethier, Wilfred J, 1986. "Illegal Immigration," American Economic Review, American Economic Association, vol. 76(2), pages 258-262, May.
    6. Epstein, Gil S & Hillman, Arye L & Ursprung, Heinrich W, 1999. "The King Never Emigrates," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 107-121, June.
    7. Gil S. Epstein & Arye L. Hillman & Heinrich W. Ursprung, 1999. "The King Never Emigrates," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 107-121, June.
    8. Carrington, William J & Detragiache, Enrica & Vishwanath, Tara, 1996. "Migration with Endogenous Moving Costs," American Economic Review, American Economic Association, vol. 86(4), pages 909-930, September.
    9. Epstein, Gil S & Hillman, Arye L., 1998. "Herd Effects and Migration," CEPR Discussion Papers 1811, C.E.P.R. Discussion Papers.
    10. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
    11. Benhabib, Jess, 1996. "On the political economy of immigration," European Economic Review, Elsevier, vol. 40(9), pages 1737-1743, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gil S. Epstein, 2012. "Migrants, Ethnicity and the Welfare State," Korean Economic Review, Korean Economic Association, vol. 28, pages 117-136.
    2. Gil S. Epstein & Odelia Heizler (Cohen), 2013. "Minimum wages and the creation of illegal migration," Economics Bulletin, AccessEcon, vol. 33(1), pages 434-441.
    3. Gil S. Epstein & Ira N. Gang, 2006. "Ethnic Networks and International Trade," Springer Books, in: Rolf J. Langhammer & Federico Foders (ed.), Labor Mobility and the World Economy, pages 85-103, Springer.
    4. Gil S. Epstein, 2013. "Frontier issues of the political economy of migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 22, pages 411-431, Edward Elgar Publishing.
    5. Gil S. Epstein & Ira N Gang, 2006. "Migrants, Ethnicity and Strategic Assimilation," Departmental Working Papers 200630, Rutgers University, Department of Economics.
    6. Ira N. Gang & Myeong-Su Yun, 2007. "Immigration Amnesty and Immigrant's Earnings," Research in Labor Economics, in: Immigration, pages 273-309, Emerald Group Publishing Limited.
    7. Gil S. Epstein & Ira N. Gang, 2010. "A Political Economy of the Immigrant Assimilation: Internal Dynamics," Working Papers 2010-13, Bar-Ilan University, Department of Economics.
    8. Gil Epstein & Shmuel Nitzan, 2006. "The struggle over migration policy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(4), pages 703-723, October.
    9. Gil S. Epstein & Ira N. Gang, 2009. "Ethnicity, assimilation, and harassment in the labor market," Research in Labor Economics, in: Ethnicity and Labor Market Outcomes, pages 67-88, Emerald Group Publishing Limited.

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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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