The Labor Market Value to Legal Status
AbstractWe present estimates of the effect of legal immigration status on earnings of undocumented workers. Our contribution to the literature centers on a two-step procedure that allows us to first estimate the legal status of an immigrant and then estimate the effect of the Immigration Reform and Control Act (IRCA) on immigrants’ labor market outcomes using a triple difference approach. From a sample of young to middle aged Mexican men, our results show that IRCA causes a 20 log point increase in labor market earnings of Mexican immigrants over the long run, and that nearly all of this increase is in the occupational wage. These results suggest that the primary disadvantage for undocumented workers is the type of jobs that they are able to obtain. We estimate the model for immigrants from other countries not benefiting from IRCA to the extent that Mexican immigrants did, and find no systematic bias towards positive and significant results.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5492.
Length: 45 pages
Date of creation: Feb 2011
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Find related papers by JEL classification:
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-26 (All new papers)
- NEP-LAB-2011-02-26 (Labour Economics)
- NEP-MIG-2011-02-26 (Economics of Human Migration)
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- Katarzyna Budnik, 2011. "Emigration Triggers: International Migration of Polish Workers between 1994 and 2009," National Bank of Poland Working Papers 90, National Bank of Poland, Economic Institute.
- Pia M. Orrenius and Madeline Zavodny, 2012. "The Economic Consequences of Amnesty for Unauthorized Immigrants," Cato Journal, Cato Journal, Cato Institute, vol. 32(1), pages 85-106, Winter.
- Giovanni Mastrobuoni & Paolo Pinotti, 2012. "Legal status and the criminal activity of immigrants," Working Papers 052, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
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