Guest Workers in the Underground Economy
AbstractGuest-worker programs have been providing rapidly growing economies with millions of temporary foreign workers over the last couple of decades. With the duration of stay strictly limited by program rules in most of the host countries and wages paid to guest workers often set at sub-market levels, many of the migrants choose to overstay and seek employment in the underground economy. This paper develops a general-equilibrium model that relates the flow of guest workers transiting to the underground economy to the rules of the program, enforcement measures of the host country and market conditions facing migrants at home and abroad.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1324.
Date of creation: Nov 2013
Date of revision:
Contact details of provider:
Postal: Drayton House, 30 Gordon Street, London WC1H 0AX
Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/
More information through EDIRC
Temporary migration; undocumented workers; underground economy;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-29 (All new papers)
- NEP-INT-2013-11-29 (International Trade)
- NEP-IUE-2013-11-29 (Informal & Underground Economics)
- NEP-LAB-2013-11-29 (Labour Economics)
- NEP-MIG-2013-11-29 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kossoudji, S.A. & Cobb-Clark, D.A., 1996.
"Coming Out of the Shadows: Learning About Legal Status and Wages from the Legalized Population,"
CEPR Discussion Papers
347, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2002. "Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 598-628, July.
- Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer, vol. 12(1), pages 91-116.
- Frank Bean & B. Lowell & Lowell Taylor, 1988. "Undocumented Mexican immigrants and the earnings of other workers in the United States," Demography, Springer, vol. 25(1), pages 35-52, February.
- Guido Friebel & Sergei Guriev, 2006.
"Smuggling Humans: A Theory of Debt-financed Migration,"
Journal of the European Economic Association,
MIT Press, vol. 4(6), pages 1085-1111, December.
- Friebel, Guido & Guriev, Sergei, 2004. "Smuggling Humans: A Theory of Debt-Financed Migration," CEPR Discussion Papers 4305, C.E.P.R. Discussion Papers.
- Guido Friebel & Sergei Guriev, 2002. "Smuggling Humans: A Theory of Debt-Financed Migration," Working Papers w0058, Center for Economic and Financial Research (CEFIR), revised Dec 2005.
- Friebel, Guido & Guriev, Sergei, 2004. "Smuggling Humans: A Theory of Debt-Financed Migration," IZA Discussion Papers 1025, Institute for the Study of Labor (IZA).
- Slobodan Djajić, 2013. "Some Essentials Of A Workable Guest‐Worker Program," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 739-766, 05.
- Jean Baldwin Grossman, 1984. "Illegal immigrants and domestic employment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 37(2), pages 240-251, January.
- Slobodan Djajic & Michael S. Michael, 2011.
"Guest Worker Programs: A Theoretical Analysis of Welfare of the Host and Source Countries,"
University of Cyprus Working Papers in Economics
05-2011, University of Cyprus Department of Economics.
- Slobodan Djajić & Michael S. Michael, 2013. "Guest worker programs: A theoretical analysis of welfare of the host and source countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(3), pages 454-475, April.
- Woodland, Alan D. & Yoshida, Chisato, 2006. "Risk preference, immigration policy and illegal immigration," Journal of Development Economics, Elsevier, vol. 81(2), pages 500-513, December.
- Peri, Giovanni, 2011. "Rethinking the area approach: Immigrants and the labor market in California," Journal of International Economics, Elsevier, vol. 84(1), pages 1-14, May.
- Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
- Slobodan Djajic, 2014. "Guest-Worker Programs," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 16-19, 07.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CReAM Administrator) or (Thomas Cornelissen).
If references are entirely missing, you can add them using this form.