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Legal and Illegal Immigration in an Efficiency Wage Model

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  • Kenji Kondoh

Abstract

In the developed countries like EU and Japan, some young native people dare to enjoy voluntary unemployment. Though they can easily find relatively low-wage job, they prefer to work part-time and look for a chance to to get high-wage job. Moreover the illegal unskilled foreign (legal skilled foreign [or domestic but from different region]) workers are complementary (substitutional) to the natives of that region and their wage is usually low (high). Reflecting this situation, we introduce two types of immigrants in an efficiency wage model (with two different job-sectors) by Shapiro and Stiglitz. The co-existence of these immigrants also permits us to analyze the importance of legality.

Suggested Citation

  • Kenji Kondoh, 2001. "Legal and Illegal Immigration in an Efficiency Wage Model," ERSA conference papers ersa01p133, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa01p133
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    References listed on IDEAS

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    1. Ethier, Wilfred J, 1986. "Illegal Immigration: The Host-Country Problem," American Economic Review, American Economic Association, vol. 76(1), pages 56-71, March.
    2. Francisco L. Rivera-Batiz, 2018. "International Migration, Non-Traded Goods and Economic Welfare in the Source Country," World Scientific Book Chapters, in: Francisco L Rivera-Batiz (ed.), International and Interregional Migration Theory and Evidence, chapter 5, pages 77-88, World Scientific Publishing Co. Pte. Ltd..
    3. Carter, Thomas J., 1999. "Illegal immigration in an efficiency wage model," Journal of International Economics, Elsevier, vol. 49(2), pages 385-401, December.
    4. Ethier, Wilfred J, 1986. "Illegal Immigration," American Economic Review, American Economic Association, vol. 76(2), pages 258-262, May.
    5. repec:bla:econom:v:52:y:1985:i:208:p:491-508 is not listed on IDEAS
    6. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    7. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

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