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The labor market experience and impact of undocumented workers

  • Julie L. Hotchkiss
  • Myriam Quispe-Agnoli

Using administrative data from the state of Georgia, the authors find that average wages among documented workers are lower in industries that employ undocumented workers and that a greater share of undocumented workers in those industries further lowers wages. In addition, undocumented workers have significantly lower labor supply elasticity, likely as a result of their limited employment and grievance opportunities. Furthermore, the inflow of undocumented workers does more to displace earlier hired undocumented workers than it does to displace documented workers.

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Paper provided by Federal Reserve Bank of Atlanta in its series Working Paper with number 2008-07.

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Date of creation: 2008
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Handle: RePEc:fip:fedawp:2008-07
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