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Immigrant-Native Wage Differentials and Immigration Reform

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  • Bucci, Gabriella A
  • Tenorio, Rafael

Abstract

The U.S. Immigration Reform and Control Act of 1986 (IRCA) increased the monitoring of illegal employment and fined employers who hire undocumented immigrants. Since these provisions tax immigrant wages, it might be expected that the immigrant-native wage gap would increase after IRCA. This hypothesis is explored by decomposing immigrant-native wage differentials before and after IRCA. It is found that (i) the immigrant-native wage gap increased; (ii) in each year most of this gap was due to individual and job characteristics; (iii) the change in the gap is due primarily to overvaluation of native characteristics and to a lesser extent to undervaluation of immigrant characteristics. Copyright 1997 by Blackwell Publishing Ltd

Suggested Citation

  • Bucci, Gabriella A & Tenorio, Rafael, 1997. "Immigrant-Native Wage Differentials and Immigration Reform," Review of Development Economics, Wiley Blackwell, vol. 1(3), pages 305-323, October.
  • Handle: RePEc:bla:rdevec:v:1:y:1997:i:3:p:305-23
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    Cited by:

    1. repec:eme:rleczz:s0147-9121(07)00007-6 is not listed on IDEAS
    2. Stanley, Denise L., 2002. "Efficiency and equity tradeoffs: incentive-compatible contracts revisited," Journal of Development Economics, Elsevier, vol. 67(2), pages 309-331, April.
    3. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
    4. Zavodny, Madeline, 2000. "The Effects of Official English Laws on Limited-English-Proficient Workers," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 427-452, July.
    5. Ira N. Gang & Myeong-Su Yun, 2006. "Immigration Amnesty and Immigrant's Earnings," Departmental Working Papers 200632, Rutgers University, Department of Economics.
    6. Scotton, Carol R. & Taylor, Laura O., 2011. "Valuing risk reductions: Incorporating risk heterogeneity into a revealed preference framework," Resource and Energy Economics, Elsevier, vol. 33(2), pages 381-397, May.

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