Employer Sanctions, Illegal Migration and Welfare
AbstractDespite border enforcement and penalties for firms that hire illegal migrants, the presence of illegal migrants in most economies still persists. This paper assumes a Ricardian economy and analyzes migration of illegal unskilled workers in a model of Cournot Duopoly where firms are producing homogenous and non-traded goods, and hiring illegal migrants. A two-stage simultaneous move game is set up: In stage 1, for a given technology and vigilance level, each individual firm will decide whether to hire illegal migrants. In stage 2, each firm will choose the Cournot output level. Using this structure, we demonstrate that hiring illegal migrants is not necessarily welfare-reducing for a given industry and furthermore the presence of illegal migrants creates more employment for domestic workers.
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 Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2010_01.
Date of creation: 09 Feb 2010
Date of revision:
Contact details of provider:
Postal: 221 Burwood Highway, Burwood 3125
Phone: 61 3 9244 3815
Web page: http://www.deakin.edu.au/buslaw/aef/index.php
Illegal Migrants; Vigilance; Cournot Competition and Welfare;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- O39 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-27 (All new papers)
- NEP-COM-2010-02-27 (Industrial Competition)
- NEP-MIG-2010-02-27 (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.:
- Gathmann, Christina, 2008. "Effects of enforcement on illegal markets: Evidence from migrant smuggling along the southwestern border," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 1926-1941, October.
- George J. Borjas & Lawrence F. Katz, 2007.
"The Evolution of the Mexican-Born Workforce in the United States,"
in: Mexican Immigration to the United States, pages 13-56
National Bureau of Economic Research, Inc.
- George J. Borjas & Lawrence F. Katz, 2005. "The Evolution of the Mexican-Born Workforce in the United States," NBER Working Papers 11281, National Bureau of Economic Research, Inc.
- Schroeter, John R. & Azzam, Azzeddine M., 1990. "Measuring Market Power in Multi-Product Oligopolies: The U.S. Meat Industry," Staff General Research Papers 11112, Iowa State University, Department of Economics.
- David Card, 2004.
"Is the New Immigration Really So Bad?,"
CReAM Discussion Paper Series
0402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
- Magnac, T. & Verdier, T., 1989.
"Welfare Aspects of Technological Adoption with Learning,"
DELTA Working Papers
89-16, DELTA (Ecole normale supérieure).
- Magnac, T. & Verdier, T., 1993. "Welfare aspects of technological adoption with learning," Journal of Public Economics, Elsevier, vol. 52(1), pages 31-48, August.
- 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.
- Entorf, Horst, 2000.
"Rational Migration Policy Should Tolerate Non-Zero Illegal Migration Flows: Lessons from Modelling the Market for Illegal Migration,"
IZA Discussion Papers
199, Institute for the Study of Labor (IZA).
- Entorf, Horst, 2000. "Rational migration policy should tolerate non-zero illegal migration flows: Lessons from modelling the market for illegal migration," W.E.P. - WÃ¼rzburg Economic Papers 23, University of Würzburg, Chair for Monetary Policy and International Economics.
- Hatta, Tatsuo, 1977. "A Theory of Piecemeal Policy Recommendations," Review of Economic Studies, Wiley Blackwell, vol. 44(1), pages 1-21, February.
- Gordon H. Hanson, 2006.
"Illegal Migration from Mexico to the United States,"
Journal of Economic Literature,
American Economic Association, vol. 44(4), pages 869-924, December.
- Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," NBER Working Papers 12141, National Bureau of Economic Research, Inc.
- Bond, Eric W. & Chen, Tain-Jy, 1987. "The welfare effects of illegal immigration," Journal of International Economics, Elsevier, vol. 23(3-4), pages 315-328, November.
- Horst Entorf & Jochen Moebert, 2004.
"The demand for illegal migration and market outcomes,"
Intereconomics: Review of European Economic Policy,
Springer, vol. 39(1), pages 7-10, January.
- Entorf, Horst & Möbert, Jochen, 2004. "The Demand for Illegal Migration and Market Outcomes," Darmstadt Discussion Papers in Economics 37283, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer, vol. 21(3), pages 627-648, July.
- George J. Borjas, 1995.
"The Economic Benefits from Immigration,"
Journal of Economic Perspectives,
American Economic Association, vol. 9(2), pages 3-22, Spring.
- Thomas J. Carter, 2005. "Undocumented Immigration and Host-Country Welfare: Competition Across Segmented Labor Markets," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 777-795.
- Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Employer Sanctions, Illegal Migration and Welfare
by Ariel Goldring in Free Market Mojo on 2010-03-03 08:17:08
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr Xueli Tang).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.