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The wage impact of undocumented workers: Evidence from administrative data

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  • Julie L. Hotchkiss
  • Myriam Quispe‐Agnoli
  • Fernando Rios‐Avila

Abstract

Using administrative, individual level, longitudinal data from the state of Georgia, this article finds that rising shares of undocumented workers results in higher earnings for documented workers, but by a small amount. A one percentage point increase in the share of undocumented workers in a documented worker's county/industry results in an average wage boost of 0.44%. Within the firm, a one percentage point increase in the percent of undocumented workers employed by the firm boosts wages by 0.09% (0.11, 0.12, and 0.04 in low, medium, and high skill firms, respectively). Potential explanations for a positive wage impact are discussed.

Suggested Citation

  • Julie L. Hotchkiss & Myriam Quispe‐Agnoli & Fernando Rios‐Avila, 2015. "The wage impact of undocumented workers: Evidence from administrative data," Southern Economic Journal, John Wiley & Sons, vol. 81(4), pages 874-906, April.
    • Handle: RePEc:wly:soecon:v:81:y:2015:i:4:p:874-906
    DOI: 10.1002/soej.12020
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