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The Proposed Immigration Reform in the United States: Its Impact on the Employment of Illegal Aliens by the Firm

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  • Katz, Eliakim
  • Stark, Oded

Abstract

In view of proposed immigration reform pertaining to the employment of illegal aliens we model a competitive, risk-averse firm employing legal as well as illegal workers whose wage is effectively a random variable. Inter alia we find that this wage does not affect the scale of the firm's operations; that parametric changes in the wage function of illegal workers have the expected effect on their employment yet do not affect the firm's output level; that a higher output price will result in proportionately more illegal hiring than legal hiring; and that a higher wage for legal workers may result in more of them being employed.

Suggested Citation

  • Katz, Eliakim & Stark, Oded, 1985. "The Proposed Immigration Reform in the United States: Its Impact on the Employment of Illegal Aliens by the Firm," EconStor Preprints 283630, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:283630
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