The Labor Market Impact of Undocumented Immigrants: Job Creation vs. Job Competition∗

نویسنده

  • Christoph Albert
چکیده

This paper studies the labor market impact of documented and undocumented immigration in a model with search frictions and non-random hiring. Since they accept lower wages, firms obtain a higher match surplus from hiring immigrants rather than natives. Therefore, immigration results in the creation of additional jobs but also generates more job competition. Whether job creation or competition is the dominating effect depends on the size of the induced fall in expected wages paid by firms. Using US data, I show in my empirical analysis that among low-skilled workers undocumented immigrants earn 8% less and have a 7 pp higher job finding rate than documented immigrants. Parameterizing the model based on these estimates, I find that the job creation effect of undocumented immigration dominates its job competition effect and leads to gains in terms of both employment and wages for native workers. In contrast, documented immigration leads to a fall in natives’ employment due to its weaker job creation effect. A policy of stricter immigration enforcement, simulated by a rise in the deportation rate of undocumented workers, decreases firms’ expected match surplus, mutes job creation and thus raises the unemployment rates of all workers.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

The Use of Social Networks among Hispanic Workers: an Indirect Test of the Effect of Social Capital

Hispanic workers are approximately fifty percent more likely to use contacts with friends or relatives to find work than white or black workers. It is possible that the reliance on co-ethnic job contacts constrains Hispanics' labor market opportunities by increasing employment segregation and lowering wages. Indeed, the use of contacts is correlated with lower wages and job prestige for Hispani...

متن کامل

Immigration and Job Creation: Which comes First?

Does immigration generate jobs in an MSA, or do employment opportunities entice immigrant inflows to an MSA? Is immigration responsible for higher unemployment, or do foreign-born inflows cause increases in self-employment that lead to improvement in labor market conditions? The causal relationship between immigrants, job growth and unemployment is a politically and economically salient subject...

متن کامل

The ins and outs of unemployment and the assimilation of recent immigrants in Spain

In this paper we study the assimilation (in employment terms) of the recent wave of immigration in Spain for the period 2002-2006. Besides the picture of heterogeneity that emerges from the origins of the workers, we differentiate the immigrants by their year of arrival in Spain (old and new immigrants). Following Shimer (2005) and using data from the Spanish Labor Force Survey we calculate the...

متن کامل

The E¤ect of Product Market Competition on Job Instability

This paper assesses the impact of product market competition on job instability. Product market competition is measured by the price-cost margin, and job instability is proxied by the intensity of the use of temporary contracts. Using both worker data from the Spanish Labor Force Survey and …rm data from the Spanish Business Strategies Survey, I show that job instability rises with competition....

متن کامل

Cultural Distance, Immigrants' Identity, and Labour Market Outcomes

Consistent estimates of the effect of ethnic identity on labor market outcomes is complicated by the endogenous relationship between performance on the labor market and attitudes towards ethnic identity. This paper uses measures of genetic and linguistic distance between an immigrants' home and host countries as instruments for ethnic identity. We find some evidence for adverse effects of home ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2017