IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v32y2014i3p653-670.html
   My bibliography  Save this article

Undocumented Workers' Employment Across U.S. Business Cycles

Author

Listed:
  • J. DAVID BROWN
  • SERIFE GENC
  • JULIE L. HOTCHKISS
  • MYRIAM QUISPE-AGNOLI

Abstract

type="main" xml:lang="en"> 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% of the difference in measured volatility between documented and undocumented employment. (JEL E24, J21, J15)

Suggested Citation

  • J. David Brown & Serife Genc & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2014. "Undocumented Workers' Employment Across U.S. Business Cycles," Contemporary Economic Policy, Western Economic Association International, vol. 32(3), pages 653-670, July.
  • Handle: RePEc:bla:coecpo:v:32:y:2014:i:3:p:653-670
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/coep.12026
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dustmann, Christian & Glitz, Albrecht & Vogel, Thorsten, 2010. "Employment, wages, and the economic cycle: Differences between immigrants and natives," European Economic Review, Elsevier, vol. 54(1), pages 1-17, January.
    2. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    3. 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..
    4. 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.
    5. 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..
    6. 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.
    7. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    8. Pia M. Orrenius & Madeline Zavodny, 2010. "Mexican Immigrant Employment Outcomes over the Business Cycle," American Economic Review, American Economic Association, vol. 100(2), pages 316-320, May.
    9. 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.
    10. 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.
    11. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, July.
    12. Griliches, Zvi, 1969. "Capital-Skill Complementarity," The Review of Economics and Statistics, MIT Press, vol. 51(4), pages 465-468, November.
    13. Giovanni Peri, 2016. "The Effect Of Immigration On Productivity: Evidence From U.S. States," World Scientific Book Chapters, in: The Economics of International Migration, chapter 8, pages 265-275, World Scientific Publishing Co. Pte. Ltd..
    14. Simon Kuznets & Ernest Rubin, 1954. "Immigration and the Foreign Born," NBER Books, National Bureau of Economic Research, Inc, number kuzn54-1.
    15. Roberto Pedace, 2006. "Immigration, Labor Market Mobility, and the Earnings of Native‐Born Workers," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(2), pages 313-345, April.
    16. Denny, Michael & Fuss, Melvyn A, 1977. "The Use of Approximation Analysis to Test for Separability and the Existence of Consistent Aggregates," American Economic Review, American Economic Association, vol. 67(3), pages 404-418, June.
    17. Simon Kuznets & Ernest Rubin, 1954. "Appendices to "Immigration and the Foreign Born"," NBER Chapters, in: Immigration and the Foreign Born, pages 85-107, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julie L. Hotchkiss & Myriam Quispe-Agnoli & Fernando Rios-Avila, 2012. "The wage impact of undocumented workers," FRB Atlanta Working Paper 2012-04, Federal Reserve Bank of Atlanta.
    2. Pia M. Orrenius & Madeline Zavodny & Emily Gutierrez, 2018. "Do State Employment Eligibility Verification Laws Affect Job Turnover?," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 394-409, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    2. Michael Ben-Gad, 2008. "Capital-Skill Complementarity and the Immigration Surplus," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(2), pages 335-365, April.
    3. Osea Giuntella & Fabrizio Mazzonna & Catia Nicodemo & Carlos Vargas-Silva, 2019. "Immigration and the reallocation of work health risks," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 1009-1042, July.
    4. Mitaritonna, Cristina & Orefice, Gianluca & Peri, Giovanni, 2017. "Immigrants and firms’ outcomes: Evidence from France," European Economic Review, Elsevier, vol. 96(C), pages 62-82.
    5. Vincent Fromentin, 2016. "The Global Economic Crisis and Migrant Workers: The Case of the Construction Sector in Europe," International Economic Journal, Taylor & Francis Journals, vol. 30(1), pages 147-163, March.
    6. Tomas Havranek & Zuzana Irsova & Lubica Laslopova & Olesia Zeynalova, 2020. "Skilled and Unskilled Labor Are Less Substitutable than Commonly Thought," Working Papers IES 2020/29, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Sep 2020.
    7. Julie L. Hotchkiss & Myriam Quispe‐Agnoli & Fernando Rios‐Avila, 2015. "The wage impact of undocumented workers: Evidence from administrative data," Southern Economic Journal, John Wiley & Sons, vol. 81(4), pages 874-906, April.
    8. Sergei Guriev & Biagio Speciale & Michele Tuccio, 2019. "How do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(1), pages 37-76.
    9. Julie L. Hotchkiss & Myriam Quispe-Agnoli & Fernando Rios-Avila, 2012. "The wage impact of undocumented workers," FRB Atlanta Working Paper 2012-04, Federal Reserve Bank of Atlanta.
    10. Randall Akee & Maggie R. Jones, 2019. "Immigrants’ Earnings Growth and Return Migration from the U.S.: Examining their Determinants using Linked Survey and Administrative Data," NBER Working Papers 25639, National Bureau of Economic Research, Inc.
    11. Vincent Fromentin & Olivier Damette & Benteng Zou, 2017. "The Global Economic Crisis and The Effect of Immigrant Workers on Native-born Employment in Europe," The World Economy, Wiley Blackwell, vol. 40(6), pages 1068-1088, June.
    12. Joel OUDINET, 2021. "Introduction - L’impact de la migration sur le développement inclusif," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 53, pages 5-21.
    13. Docquier, Frédéric & Kone, Zovanga L. & Mattoo, Aaditya & Ozden, Caglar, 2019. "Labor market effects of demographic shifts and migration in OECD countries," European Economic Review, Elsevier, vol. 113(C), pages 297-324.
    14. Carlos Medina & Christian Posso, 2010. "Technical Change and Polarization of the Labor Market: Evidence for Brazil, Colombia and Mexico," Borradores de Economia 614, Banco de la Republica de Colombia.
    15. Gianluca Orefice & Giovanni Peri, 2020. "Immigration and Worker-Firm Matching," Working Papers DT/2020/02, DIAL (Développement, Institutions et Mondialisation).
    16. Lucht, Michael & Haas, Anette, 2015. "The productivity effect of migrants : wage cost advantages and heterogeneous firms," IAB-Discussion Paper 201505, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Andrés Rodríguez-Pose & Viola von Berlepsch, 2012. "When migrants rule: the legacy of mass migration on economic development in the US," Papers in Evolutionary Economic Geography (PEEG) 1216, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2012.
    18. Antonio Ciccone & Giovanni Peri, 2005. "Long-Run Substitutability Between More and Less Educated Workers: Evidence from U.S. States, 1950-1990," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 652-663, November.
    19. Nicolò Gatti & Fabrizio Mazzonna & Raphaël Parchet & Giovanni Pica, "undated". "Opening the labor market to qualified immigrants in absence of linguistic barriers," Development Working Papers 483, Centro Studi Luca d'Agliano, University of Milano.
    20. Pulido, José & Varón, Alejandra, 2024. "Misallocation of the immigrant workforce: Aggregate productivity effects for the host country," Economic Modelling, Elsevier, vol. 130(C).

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:32:y:2014:i:3:p:653-670. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.