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Undocumented Immigration and Host‐Country Welfare: Competition Across Segmented Labor Markets

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  • Thomas J. Carter

Abstract

. In this paper's model, undocumented workers are endogenously sorted into secondary labor markets. When further illegal immigration occurs, some new migrants follow their fellows into already migrant‐dominated jobs, lowering migrant wages and raising real incomes of host‐country labor and capital. Some submarkets switch from employing legal workers to employing migrants, lowering demand for and wages of legal workers. Undocumented immigration is Pareto‐improving when enforcement reserves primary‐sector jobs for legal workers. Pareto‐dominant policies target the number of migrant‐dominated submarkets, not the number of migrants. This appears consistent with U.S. enforcement practices. The effects of deportations, employer sanctions, and amnesties are explored.

Suggested Citation

  • Thomas J. Carter, 2005. "Undocumented Immigration and Host‐Country Welfare: Competition Across Segmented Labor Markets," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 777-795, November.
    • Handle: RePEc:bla:jregsc:v:45:y:2005:i:4:p:777-795
    DOI: 10.1111/j.0022-4146.2005.00392.x
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    Cited by:

    1. Stark, Oded & Jakubek, Marcin, 2021. "Employer sanctions: A policy with a pitfall?," University of Tübingen Working Papers in Business and Economics 149, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    2. Claudio Deiana & Ludovica Giua & Roberto Nisticò, "undated". "Legalization and Long-Term Outcomes of Immigrant Workers," Development Working Papers 480, Centro Studi Luca d'Agliano, University of Milano.
    3. Mayr, Karin & Minter, Steffen & Krieger, Tim, 2012. "Policies on illegal immigration in a federation," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 153-165.
    4. Flaig, Dorothee & Siddig, Khalid & Grethe, Harald & Luckmann, Jonas & McDonald, Scott, 2013. "Relaxing Israeli restrictions on Palestinian labour: Who benefits?," Economic Modelling, Elsevier, vol. 31(C), pages 143-150.
    5. Mayr, Karin & Minter, Steffen & Krieger, Tim, 2012. "Policies on illegal immigration in a federation," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 153-165.
    6. Claudio Deiana & Ludovica Giua & Roberto Nisticò, 2021. "Getting Off on the Wrong Foot: The Long-Term Effects of Missing a Large-Scale Amnesty for Immigrant Workers," CSEF Working Papers 625, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    7. Jesús Clemente & Gemma Larramona, 2012. "Can a legalization programme for immigrants generate conflict among natives?," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 11, pages 365-386, Edward Elgar Publishing.
    8. Kenji Kondoh, 2020. "A paradoxical immigration restriction policy for unskilled illegal immigrants," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 479-497, June.
    9. Javier Ferri & Antonio G. Gómez-Plana & Joan A. Martín-Montaner, 2006. "Illegal immigration booms and welfare in the host country," European Journal of Population, Springer;European Association for Population Studies, vol. 22(4), pages 353-370, December.
    10. María Hierro & Adolfo Maza, 2010. "Per capita income convergence and internal migration in Spain: Are foreign‐born migrants playing an important role?," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 89-107, March.

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