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Immigrant‐Native Wage Differentials and Immigration Reform

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  • Gabriella A. Bucci
  • Rafael Tenorio

Abstract

The US 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.

Suggested Citation

  • Gabriella A. Bucci & Rafael Tenorio, 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:305-323
    DOI: 10.1111/1467-9361.00021
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    Cited by:

    1. O B Bodvarsson & John Sessions, 2010. "Nationality Discrimination in the Labor Market: Theory and Test," Department of Economics Working Papers 08/10, University of Bath, Department of Economics.

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