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The labor market experience and impact of undocumented workers

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Author Info
Julie L. Hotchkiss
Myriam Quispe-Agnoli

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Abstract

Using administrative data from the state of Georgia, the authors find that average wages among documented workers are lower in industries that employ undocumented workers and that a greater share of undocumented workers in those industries further lowers wages. In addition, undocumented workers have significantly lower labor supply elasticity, likely as a result of their limited employment and grievance opportunities. Furthermore, the inflow of undocumented workers does more to displace earlier hired undocumented workers than it does to displace documented workers.

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Paper provided by Federal Reserve Bank of Atlanta in its series Working Paper with number 2008-07.

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Date of creation: 2008
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Handle: RePEc:fip:fedawp:2008-07

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Related research
Keywords: Immigrants;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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.:
  1. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2006. "Immigration and African-American Employment Opportunities: The Response of Wages, Employment, and Incarceration to Labor Supply Shocks," NBER Working Papers 12518, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Julie Hotchkiss, 2005. "Employment growth and labor force participation: how many jobs are enough?," Economic Review, Federal Reserve Bank of Atlanta, issue Q 1, pages 1-13. [Downloadable!]
    Other versions:
  3. David Card & John DiNardo, 2000. "Do Immigrant Inflows Lead to Native Outflows?," American Economic Review, American Economic Association, vol. 90(2), pages 360-367, May. [Downloadable!] (restricted)
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  4. Chiswick, Carmel U. & Chiswick, Barry R. & Karras, Georgios, 1992. "The impact of immigrants on the macroeconomy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 37(1), pages 279-316, December. [Downloadable!] (restricted)
  5. 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.
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  6. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Pia M. Orrenius & Madeline Zavodny & Leslie Lukens, 2008. "Why stop there? Mexican migration to the U.S. border region," Working Papers 0803, Federal Reserve Bank of Dallas. [Downloadable!]
  8. Raphael, Steven & Riker, David A., 1999. "Geographic Mobility, Race, and Wage Differentials," Journal of Urban Economics, Elsevier, vol. 45(1), pages 17-46, January. [Downloadable!] (restricted)
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  11. Frank T. Denton & Byron G. Spencer, 1997. "Population, Labour Force and Long-term Economic Growth," Quantitative Studies in Economics and Population Research Reports 336, McMaster University.
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  12. Friedberg, Rachel M & Hunt, Jennifer, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring. [Downloadable!] (restricted)
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  13. George J. Borjas, 2005. "Native Internal Migration and the Labor Market Impact of Immigration," NBER Working Papers 11610, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Gordon H. Hanson & Antonio Spilimbergo, 1999. "Illegal Immigration, Border Enforcement, and Relative Wages: Evidence from Apprehensions at the U.S.-Mexico Border," American Economic Review, American Economic Association, vol. 89(5), pages 1337-1357, December. [Downloadable!] (restricted)
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  15. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January. [Downloadable!] (restricted)
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  16. Paul Ong & Don Mar, 2007. "Differential Impacts of Immigrants on Native Black and White Workers," American Economic Review, American Economic Association, vol. 97(2), pages 383-387, May. [Downloadable!]
  17. Ofek, Haim & Merrill, Yesook, 1997. "Labor Immobility and the Formation of Gender Wage Gaps in Local Markets," Economic Inquiry, Oxford University Press, vol. 35(1), pages 28-47, January.
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  19. J. Benjamin & P. Chinloy & G. Jud & D. Winkler, 2007. "Do Some People Work Harder than Others? Evidence from Real Estate Brokerage," The Journal of Real Estate Finance and Economics, Springer, vol. 35(1), pages 95-110, July. [Downloadable!] (restricted)
  20. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November. [Downloadable!] (restricted)
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  21. Finis Welch, 1999. "In Defense of Inequality," American Economic Review, American Economic Association, vol. 89(2), pages 1-17, May. [Downloadable!] (restricted)
  22. Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Blackwell Publishing, vol. 49(4), pages 533-49, October. [Downloadable!] (restricted)
  23. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
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Full references

Cited by:
(explanations, 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.)

  1. J. David Brown & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2008. "Undocumented worker employment and firm survivability," Working Paper 2008-28, Federal Reserve Bank of Atlanta. [Downloadable!]
  2. Federico S. Mandelman & Andrei Zlate, 2008. "Immigration and the macroeconomy," Working Paper 2008-25, Federal Reserve Bank of Atlanta. [Downloadable!]
  3. Liu, Xiangbo, 2009. "On the Macroeconomic and Welfare Effects of Illegal Immigration," MPRA Paper 15469, University Library of Munich, Germany. [Downloadable!]
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