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Undocumented Workers’ Employment across U.S. Business Cycles

Author

Listed:
  • David Brown
  • Serife Genc
  • Julie Hothckiss
  • Myriam Quispe-Agnoli

Abstract

Using matched employer-employee data from the state of Georgia, this paper investigates how employment of undocumented workers varies along the business cycle and how it differs from the adjustment in employment of documented workers. The cyclical component of undocumented employment is found to be significantly more volatile than the cyclical component of documented employment. Simulation results indicate that complementarities between documented workers and capital account for almost 90 percent of the difference in measured volatility between documented and undocumented employment.

Suggested Citation

  • David Brown & Serife Genc & Julie Hothckiss & Myriam Quispe-Agnoli, 2013. "Undocumented Workers’ Employment across U.S. Business Cycles," Working Papers 1319, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  • Handle: RePEc:tcb:wpaper:1319
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    File URL: http://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Publications/Research/Working+Paperss/2013/13-19
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    References listed on IDEAS

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    3. Berndt, Ernst R & Christensen, Laurits R, 1974. "Testing for the Existence of a Consistent Aggregate Index of Labor Inputs," American Economic Review, American Economic Association, vol. 64(3), pages 391-404, June.
    4. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    5. Fallon, P R & Layard, P R G, 1975. "Capital-Skill Complementarity, Income Distribution, and Output Accounting," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 279-301, April.
    6. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1403-1448.
    7. J. David Brown & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2013. "Does Employing Undocumented Workers Give Firms A Competitive Advantage?," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 158-170, February.
    8. Julie L. Hotchkiss & Myriam Quispe‐Agnoli, 2013. "The Expected Impact of State Immigration Legislation on Labor Market Outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(1), pages 34-59, January.
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    11. Simon Kuznets & Ernest Rubin, 1954. "Immigration and the Foreign Born," NBER Books, National Bureau of Economic Research, Inc, number kuzn54-1.
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    Cited by:

    1. Hotchkiss, Julie L. & Quispe-Agnoli, Myriam & Rios-Avila, Fernando, 2012. "The wage impact of undocumented workers," FRB Atlanta Working Paper 2012-04, Federal Reserve Bank of Atlanta.

    More about this item

    Keywords

    business cycles; illegal immigration; undocumented workers;

    JEL classification:

    • J - Labor and Demographic Economics
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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