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Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population

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Author Info
Sherrie A. Kossoudji (University of Michigan)
Deborah A. Cobb-Clark (Australian National University)

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Abstract

The 1986 Immigration Reform and Control Act (IRCA) granted amnesty to approximately 1.7 million long-term unauthorized workers in an effort to bring them "out of the shadows" and improve their labor market opportunities. An analysis of wages using panel data for a sample of legalized men provides evidence that wage determinants are structurally different after amnesty for them but not for the comparison group as measured during the same time periods. The wage penalty for being unauthorized is estimated to range from 14% to 24%. The wage benefit of legalization under IRCA was approximately 6%.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 20 (2002)
Issue (Month): 3 (July)
Pages: 598-628
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Handle: RePEc:ucp:jlabec:v:20:y:2002:i:3:p:598-628

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  1. Barry R. Chiswick, 1999. "Are Immigrants Favorably Self-Selected? An Economic Analysis," University of Chicago - George G. Stigler Center for Study of Economy and State 147, Chicago - Center for Study of Economy and State. [Downloadable!]
    Other versions:
  2. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Duleep, Harriet Orcutt & Dowhan, Daniel J., 2002. "Revisiting the Family Investment Model with Longitudinal Data: The Earnings Growth of Immigrant and U.S.-Born Women," IZA Discussion Papers 568, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Robert W. Fairlie & Christopher Woodruff, 2006. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," IZA Discussion Papers 2039, Institute for the Study of Labor (IZA). [Downloadable!]
  5. David McKenzie & Hillel Rapoport, 2007. "Self-selection patterns in Mexico-U.S. migration: The role of migration networks," CReAM Discussion Paper Series 0701, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
    Other versions:
  6. Friebel, Guido & Guriev, Sergei, 2004. "Smuggling Humans: A Theory of Debt-Financed Migration," CEPR Discussion Papers 4305, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. David McKenzie & Hillel Rapoport, 2006. "Can migration reduce educational attainments? Depressing evidence from Mexico," CReAM Discussion Paper Series 0601, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  8. Francesca Mazzolari, 2007. "Dual Citizenship Rights: Do They Make More and Better Citizens?," IZA Discussion Papers 3008, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Ira N. Gang & Myeong-Su Yun, 2006. "Immigration Amnesty and Immigrant's Earnings," Departmental Working Papers 200632, Rutgers University, Department of Economics. [Downloadable!]
  10. Robert Fairlie & Christopher Woodruff, 2005. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," NBER Working Papers 11527, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. McKenzie, David & Rapoport, Hillel, 2006. "Can migration reduce educational attainment ? Evidence from Mexico," Policy Research Working Paper Series 3952, The World Bank. [Downloadable!]
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