IDEAS home Printed from https://ideas.repec.org/p/crm/wpaper/1415.html
   My bibliography  Save this paper

Employment of Undocumented Immigrants and the Prospect of Legal Status: Evidence from an Amnesty Program

Author

Listed:
  • Carlo Devillanova

    (University of Bocconi)

  • Francesco Fasani

    (Queen Mary University)

  • Tommaso Frattini

    (University of Milan)

Abstract

This paper estimates the causal effect of the prospect of legal status on the employment outcomes of undocumented immigrants. Our identification strategy exploits a natural experiment provided by the 2002 amnesty program in Italy that introduced an exogenous discontinuity in eligibility based on date of arrival. We find that the prospect of legal status significantly increases the employment probability of immigrants that are potentially eligible for the amnesty relative to other undocumented immigrants. The size of the estimated effect is equivalent to about two thirds of the increase in employment that undocumented immigrants in our sample normally experience in their first year after arrival in Italy. These findings are robust to several falsification exercises.

Suggested Citation

  • Carlo Devillanova & Francesco Fasani & Tommaso Frattini, 2014. "Employment of Undocumented Immigrants and the Prospect of Legal Status: Evidence from an Amnesty Program," RF Berlin - CReAM Discussion Paper Series 1415, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
  • Handle: RePEc:crm:wpaper:1415
    as

    Download full text from publisher

    File URL: https://www.cream-migration.org/publ_uploads/CDP_15_14.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Neeraj Kaushal, 2006. "Amnesty Programs and the Labor Market Outcomes of Undocumented Workers," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
    2. Antonio Spilimbergo & Gordon H. Hanson, 1999. "Illegal Immigration, Border Enforcement, and Relative Wages: Evidence from Apprehensions at the U.S.-Mexico Border," American Economic Review, American Economic Association, vol. 89(5), pages 1337-1357, December.
    3. Facchini, Giovanni & Testa, Cecilia, 2021. "The rhetoric of closed borders: Quotas, lax enforcement and illegal immigration," Journal of International Economics, Elsevier, vol. 129(C).
    4. Ying Pan, 2012. "The Impact of Legal Status on Immigrants’ Earnings and Human Capital: Evidence from the IRCA 1986," Journal of Labor Research, Springer, vol. 33(2), pages 119-142, June.
    5. Catalina Amuedo-Dorantes & Cynthia Bansak & Steven Raphael, 2007. "Gender Differences in the Labor Market: Impact of IRCA," American Economic Review, American Economic Association, vol. 97(2), pages 412-416, May.
    6. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    7. Amuedo-Dorantes, Catalina & Mazzolari, Francesca, 2010. "Remittances to Latin America from migrants in the United States: Assessing the impact of amnesty programs," Journal of Development Economics, Elsevier, vol. 91(2), pages 323-335, March.
    8. Catalina Amuedo-Dorantes & Cynthia Bansak, 2011. "The Impact of Amnesty on Labor Market Outcomes: A Panel Study Using the Legalized Population Survey," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 443-471, July.
    9. Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2000. "IRCA's impact on the occupational concentration and mobility of newly-legalized Mexican men," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 81-98.
    10. David C. Wyld, 2010. "ASecond Lifefor organizations?: managing in the new, virtual world," Management Research Review, Emerald Group Publishing Limited, vol. 33(6), pages 529-562, May.
    11. Andri Chassambouli & Giovanni Peri, 2015. "The Labor Market Effects of Reducing the Number of Illegal Immigrants," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 792-821, October.
    12. Sherrie A. Kossoudji & Deborah A. Cobb-Clark, 2002. "Coming out of the Shadows: Learning about Legal Status and Wages from the Legalized Population," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 598-628, July.
    13. Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
    14. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    15. Francisco L. Rivera-Batiz, 1999. "Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 91-116.
    16. Francesca Mazzolari, 2009. "Dual citizenship rights: do they make more and richer citizens?," Demography, Springer;Population Association of America (PAA), vol. 46(1), pages 169-191, February.
    17. Sarah Bohn & Magnus Lofstrom & Steven Raphael, 2014. "Did the 2007 Legal Arizona Workers Act Reduce the State's Unauthorized Immigrant Population?," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 258-269, May.
    18. Ethier, Wilfred J, 1986. "Illegal Immigration," American Economic Review, American Economic Association, vol. 76(2), pages 258-262, May.
    19. Pia Orrenius & Madeline Zavodny, 2003. "Do amnesty programs reduce undocumented immigration? Evidence from Irca," Demography, Springer;Population Association of America (PAA), vol. 40(3), pages 437-450, August.
    20. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420, October.
    21. David J. McKenzie & Johan Mistiaen, 2009. "Surveying migrant households: a comparison of census‐based, snowball and intercept point surveys," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 172(2), pages 339-360, April.
    22. Giovanni Mastrobuoni & Paolo Pinotti, 2015. "Legal Status and the Criminal Activity of Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 175-206, April.
    23. Devillanova, Carlo, 2008. "Social networks, information and health care utilization: Evidence from undocumented immigrants in Milan," Journal of Health Economics, Elsevier, vol. 27(2), pages 265-286, March.
    24. Cobb-Clark, Deborah A & Shiells, Clinton R & Lowell, B Lindsay, 1995. "Immigration Reform: The Effects of Employer Sanctions and Legalization on Wages," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 472-498, July.
    25. Gordon H. Hanson, 2006. "Illegal Migration from Mexico to the United States," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 869-924, December.
    26. Pia Orrenius & Madeline Zavodny & Emily Kerr, 2012. "Chinese Immigrants in the U.S. Labor Market: Effects of Post-Tiananmen Immigration Policy," International Migration Review, Wiley Blackwell, vol. 46(2), pages 456-482, June.
    27. Chau, Nancy H, 2001. "Strategic Amnesty and Credible Immigration Reform," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 604-634, July.
    28. Alessandra Casarico & Giovanni Facchini & Tommaso Frattini, 2012. "Spending More is Spending Less: Policy Dilemmas on Irregular Migration," Development Working Papers 330, Centro Studi Luca d'Agliano, University of Milano, revised 27 Mar 2012.
    29. Andri Chassambouli & Giovanni Peri, 2015. "The Labor Market Effects of Reducing the Number of Illegal Immigrants," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 792-821, October.
    30. Silvia Helena Barcellos, 2010. "Legalization and the Economic Status of Immigrants," Working Papers WR-754, RAND Corporation.
    31. Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, vol. 142(2), pages 675-697, February.
    32. Silvia Helena Barcellos, 2010. "Legalization and the Economic Status of Immigrants," Working Papers 754, RAND Corporation.
    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. Joan Monras & Javier Vázquez-Grenno & Ferran Elias, 2017. "Understanding the Effects of Legalizing Undocumented Immigrants," RF Berlin - CReAM Discussion Paper Series 1708, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    2. Cynthia Bansak, 2016. "Legalizing undocumented immigrants," IZA World of Labor, Institute of Labor Economics (IZA), pages 245-245, March.
    3. Simone Cremaschi & Carlo Devillanova, 2016. "Immigrants and Legal Status: Do Personal Contacts Matter?," RF Berlin - CReAM Discussion Paper Series 1629, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    4. Cynthia Bansak & Sarah Pearlman, 2021. "The impact of legalizing unauthorized immigrants," IZA World of Labor, Institute of Labor Economics (IZA), pages 245-245, May.
    5. Francesco Fasani, 2018. "Immigrant crime and legal status: evidence from repeated amnesty programs," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 887-914.
    6. Emanuele Bracco & Luisanna Onnis, 2022. "Immigration, amnesties, and the shadow economy," Bulletin of Economic Research, Wiley Blackwell, vol. 74(4), pages 1135-1162, October.
    7. Giuntella, Osea & Lonsky, Jakub, 2020. "The effects of DACA on health insurance, access to care, and health outcomes," Journal of Health Economics, Elsevier, vol. 72(C).
    8. Francesco Fasani, 2015. "Understanding the Role of Immigrants’ Legal Status: Evidence from Policy Experiments," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 722-763.
    9. Monras, Joan & Vázquez-Grenno, Javier & Elias, Ferran, 2018. "Understanding the Effects of Granting Work Permits to Undocumented Immigrants," CEPR Discussion Papers 12726, C.E.P.R. Discussion Papers.
    10. Sherrie A. Kossoudji, 2016. "What are the consequences of regularizing undocumented immigrants?," IZA World of Labor, Institute of Labor Economics (IZA), pages 296-296, September.
    11. Battisti, Michele & Giesing, Yvonne & Laurentsyeva, Nadzeya, 2019. "Can job search assistance improve the labour market integration of refugees? Evidence from a field experiment," Labour Economics, Elsevier, vol. 61(C).
    12. Francesco Fasani, 2015. "Understanding the Role of Immigrants’ Legal Status: Evidence from Policy Experiments," CESifo Economic Studies, CESifo, vol. 61(3-4), pages 722-763.
    13. Eric Schuss, 2017. "Substantial Labor Market Effects of the Residency Status: How Important Are Initial Conditions at Arrival for Immigrants?," SOEPpapers on Multidisciplinary Panel Data Research 952, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Edoardo Di Porto & Enrica Maria Martino & Paolo Naticchioni, 2018. "Back to Black? The Impact of Regularizing Migrant Workers," CSEF Working Papers 517, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

    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. Altangerel, Khulan, 2019. "Essays on immigration policy," Other publications TiSEM 954c6300-249e-496c-8cef-0, Tilburg University, School of Economics and Management.
    2. Francesco Fasani, 2015. "Understanding the Role of Immigrants’ Legal Status: Evidence from Policy Experiments," CESifo Economic Studies, CESifo Group, vol. 61(3-4), pages 722-763.
    3. Francesco Fasani, 2015. "Understanding the Role of Immigrants’ Legal Status: Evidence from Policy Experiments," CESifo Economic Studies, CESifo, vol. 61(3-4), pages 722-763.
    4. Cascio, Elizabeth U. & Lewis, Ethan G., 2019. "Distributing the Green (Cards): Permanent residency and personal income taxes after the Immigration Reform and Control Act of 1986," Journal of Public Economics, Elsevier, vol. 172(C), pages 135-150.
    5. 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.
    6. 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.
    7. Casarico, Alessandra & Facchini, Giovanni & Frattini, Tommaso, 2018. "What drives the legalization of immigrants? Evidence from IRCA," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 258-273.
    8. Simone Cremaschi & Carlo Devillanova, 2016. "Immigrants and Legal Status: Do Personal Contacts Matter?," RF Berlin - CReAM Discussion Paper Series 1629, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    9. Emmanuelle Auriol & Alice Mesnard, 2016. "Sale of Visas: a Smuggler's Final Song?," Economica, London School of Economics and Political Science, vol. 83(332), pages 646-678, October.
    10. Auriol, A. & Mesnard, A., 2013. "Sale of visas: a smuggler's final song?," Working Papers 13/06, Department of Economics, City University London.
    11. Chi, Miao & Drewianka, Scott, 2014. "How much is a green card worth? Evidence from Mexican men who marry women born in the U.S," Labour Economics, Elsevier, vol. 31(C), pages 103-116.
    12. Emmanuelle Auriol & Alice Mesnard, 2016. "Sale of Visas: a Smuggler's Final Song?," Economica, London School of Economics and Political Science, vol. 83(332), pages 646-678, October.
    13. Eric Schuss, 2020. "Substantial Labor Market Effects of the Residency Status," Journal of International Migration and Integration, Springer, vol. 21(4), pages 993-1026, December.
    14. Fabio Méndez & Facundo Sepúlveda & Nieves Valdés, 2016. "Legalization and human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 721-756, July.
    15. Eric Schuss, 2017. "Substantial Labor Market Effects of the Residency Status: How Important Are Initial Conditions at Arrival for Immigrants?," SOEPpapers on Multidisciplinary Panel Data Research 952, DIW Berlin, The German Socio-Economic Panel (SOEP).
    16. Edoardo Di Porto & Enrica Maria Martino & Paolo Naticchioni, 2018. "Back to Black? The Impact of Regularizing Migrant Workers," CSEF Working Papers 517, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    17. Paolo Pinotti, 2017. "Clicking on Heaven's Door: The Effect of Immigrant Legalization on Crime," American Economic Review, American Economic Association, vol. 107(1), pages 138-168, January.
    18. Monras, Joan & Vázquez-Grenno, Javier & Elias Moreno, Ferran, 2017. "Understanding the Effects of Legalizing Undocumented Immigrants," IZA Discussion Papers 10687, Institute of Labor Economics (IZA).
    19. Magris, Francesco & Russo, Giuseppe, 2016. "Fiscal Revenues and Commitment in Immigration Amnesties," European Journal of Political Economy, Elsevier, vol. 42(C), pages 75-90.
    20. Lofstrom, Magnus & Hill, Laura E. & Hayes, Joseph, 2010. "Did Employer Sanctions Lose Their Bite? Labor Market Effects of Immigrant Legalization," IZA Discussion Papers 4972, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Illegal immigration; Natural experiment; Legalization;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:crm:wpaper:1415. 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: CReAM Administrator or Matthew Nibloe (email available below). General contact details of provider: https://edirc.repec.org/data/cmucluk.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.