On the welfare impacts of an immigration amnesty
This paper aims to assess the effects of an immigration amnesty on agents' welfare by using a simple two-period overlapping generations model. Given that illegal immigrants play a role in the economy even before being regularized, an amnesty differs from new immigration. In the presence of labor market discrimination, capital holders are harmed as the acquisition of legal status increases the wage bill that they pay. The net fiscal effect strongly depends on the discrimination that illegal workers face ex ante. A calibration of the model on Germany and the United Kingdom highlights overall limited economic consequences of amnesty which can be contrasted to the effects of deportation and new legal immigration. In particular, when public welfare expenditures are low, amnesty and new immigration can increase native's welfare in the long run while deportation might harm less-educated agents.
|Date of creation:||09 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +32 10473945
Web page: http://www.uclouvain.be/ires
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de la Croix,David & Michel,Philippe, 2002.
"A Theory of Economic Growth,"
Cambridge University Press, number 9780521001151.
- Catalina Amuedo-Dorantes & Cynthia Bansak, 2011.
"The Impact of Amnesty on Labor Market Outcomes: A Panel Study Using the Legalized Population Survey,"
CReAM Discussion Paper Series
1106, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Amuedo-Dorantes, Catalina & Bansak, Cynthia, 2011. "The Impact of Amnesty on Labor Market Outcomes: A Panel Study Using the Legalized Population Survey," IZA Discussion Papers 5576, Institute for the Study of Labor (IZA).
- David Card, 2009.
"Immigration and Inequality,"
CReAM Discussion Paper Series
0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Joshua D. Angrist, 1995.
"The Economic Returns to Schooling in the West Bank and Gaza Strip,"
95-5, Massachusetts Institute of Technology (MIT), Department of Economics.
- Angrist, Joshua D, 1995. "The Economic Returns to Schooling in the West Bank and Gaza Strip," American Economic Review, American Economic Association, vol. 85(5), pages 1065-87, December.
- Epstein, Gil S & Weiss, Avi, 2001.
"A Theory of Immigration Amnesties,"
CEPR Discussion Papers
2830, C.E.P.R. Discussion Papers.
- Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer, vol. 12(1), pages 91-116.
- Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000.
"Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis,"
Econometric Society, vol. 68(5), pages 1029-1054, September.
- Per Krusell & Lee E. Ohanian & Jose-Victor Rios-Rull & Giovanni L. Violante, 1997. "Capital-skill complementarity and inequality: a macroeconomic analysis," Staff Report 239, Federal Reserve Bank of Minneapolis.
- Katz, L.F. & Murphy, K.M., 1991.
"Changes in Relative Wages, 1963-1987: Supply and Demand Factors,"
Harvard Institute of Economic Research Working Papers
1580, Harvard - Institute of Economic Research.
- Katz, Lawrence F & Murphy, Kevin M, 1992. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 35-78, February.
- Lawrence F. Katz & Kevin M. Murphy, 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," NBER Working Papers 3927, National Bureau of Economic Research, Inc.
- George J. Borjas, 2003.
"The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market,"
NBER Working Papers
9755, National Bureau of Economic Research, Inc.
- George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
- Gabriel J. Felbermayr & Wido Geis & Wilhelm Kohler, 2008.
"Restrictive Immigration Policy in Germany: Pains and Gains Foregone?,"
CESifo Working Paper Series
2316, CESifo Group Munich.
- Felbermayr, Gabriel J. & Geis, Wido & Kohler, Wilhelm K., 2008. "Restrictive immigration policy in Germany: pains and gains foregone?," Discussion Paper Series 1: Economic Studies 2008,18, Deutsche Bundesbank, Research Centre.
- Felbermayr, Gabriel & Geis, Wido & Kohler, Wilhelm K., 2010. "Restrictive immigration policy in Germany: Pains and gains foregone?," Munich Reprints in Economics 20616, University of Munich, Department of Economics.
- Chiswick, Barry R, 1988. "Illegal Immigration and Immigration Control," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 101-15, Summer.
- Silvia Helena Barcellos, 2010. "Legalization and the Economic Status of Immigrants," Working Papers 754, RAND Corporation Publications Department.
- Pia M. Orrenius & Madeline Zavodny, 2004. "What are the consequences of an amnesty for undocumented immigrants?," FRB Atlanta Working Paper No. 2004-10, Federal Reserve Bank of Atlanta.
- Kossoudji, S.A. & Cobb-Clark, D.A., 1996.
"Coming Out of the Shadows: Learning About Legal Status and Wages from the Legalized Population,"
CEPR Discussion Papers
347, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2002. "Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 598-628, July.
- Neeraj Kaushal, 2006. "Amnesty Programs and the Labor Market Outcomes of Undocumented Workers," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
- Karlson, Stephen H. & Katz, Eliakim, 2003. "A positive theory of immigration amnesties," Economics Letters, Elsevier, vol. 78(2), pages 231-239, February.
- Ira N. Gang & Myeong-Su Yun, 2006. "Immigration Amnesty and Immigrant's Earnings," Departmental Working Papers 200632, Rutgers University, Department of Economics.
- Herbert Brücker & Elke J. Jahn, 2011.
"Migration and Wage‐setting: Reassessing the Labor Market Effects of Migration,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 113, pages 286-317, 06.
- Herbert Brücker & Elke J. Jahn, 2009. "Migration and Wage-Setting: Reassessing the Labor Market Effects of Migration," Kiel Working Papers 1502, Kiel Institute for the World Economy.
- Chau, Nancy H, 2001. "Strategic Amnesty and Credible Immigration Reform," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 604-34, July.
When requesting a correction, please mention this item's handle: RePEc:ctl:louvir:2012010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST)
If references are entirely missing, you can add them using this form.