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Work Effort, Moderation in Expulsion, and Illegal Migration

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  • Stark, Oded

Abstract

Illegal migrants supply a valuable productive input: effort. But their status as illegals means that these migrants face a strictly positive probability of expulsion. A return to their country of origin entails reduced earnings when the wage at origin is lower than the wage at destination. This prospect induces illegal migrants to exert more work effort than comparable workers who face no such prospect. The lower the probable, alternative earnings, the harsher the penalty that illegal migrants will be subjected to upon their return, for a given probability of expulsion, and the higher the level of effort they will exert at destination. While the homecountry wage that awaits the illegal migrants upon their return is exogenous to the host country, the probability of their return is not. Given the home-country wage, a higher probability of expulsion will induce illegal migrants to supply more effort. Hence, different combinations of probabilities of expulsion and home-country wages yield the same level of effort. Thus, variation in the extent to which receiving countries undertake measures aimed at apprehending and expelling illegal migrants can be attributed not to characteristics of the illegal migrants themselves but to a feature that pertains to the illegal migrants' country of origin.

Suggested Citation

  • Stark, Oded, 2006. "Work Effort, Moderation in Expulsion, and Illegal Migration," Discussion Papers 7127, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:7127
    DOI: 10.22004/ag.econ.7127
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    File URL: https://ageconsearch.umn.edu/record/7127/files/dp060109.pdf
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    References listed on IDEAS

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    1. Stark, Oded, 2000. "On a Variation in the Economic Performance of Migrants by their Home Country's Wage," Discussion Papers 281248, University of Bonn, Center for Development Research (ZEF).
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    Cited by:

    1. J. David Brown & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2008. "Undocumented worker employment and firm survivability," FRB Atlanta Working Paper 2008-28, Federal Reserve Bank of Atlanta.
    2. Stark, Oded & Jakubek, Marcin, 2021. "Employer sanctions: A policy with a pitfall?," University of Tübingen Working Papers in Business and Economics 149, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    3. J. David Brown & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2013. "Does Employing Undocumented Workers Give Firms A Competitive Advantage?," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 158-170, February.
    4. Brown, J. David & Hotchkiss, Julie L. & Quispe-Agnoli, Myriam, 2009. "Undocumented Worker Employment and Firm Survival," IZA Discussion Papers 3936, Institute of Labor Economics (IZA).
    5. Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2009. "Employer monopsony power in the labor market for undocumented workers," FRB Atlanta Working Paper 2009-14, Federal Reserve Bank of Atlanta.
    6. Altangerel, Khulan, 2019. "Essays on immigration policy," Other publications TiSEM 954c6300-249e-496c-8cef-0, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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