Working Paper: CEPR ID: DP2602
Authors: Gil S. Epstein
Abstract: This paper looks at the situation of legal immigrants who employ illegal immigrants to provide them with various services. This enables the legal immigrants to allocate more time to other work, thereby increasing their earnings. Illegal immigrants employed by legal immigrants may specialize in certain professions and may themselves employ other illegal immigrants. An economy is evolving whose sole purpose is the provision of services by illegal immigrants for legal immigrants.
Keywords: Guest Workers; Illegal Migration; Legal Migration
JEL Codes: F22; K42; P16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| legal immigrants employing illegal immigrants (K37) | increased earnings for legal immigrants (K37) |
| tax rates (H29) | employment of illegal immigrants by legal immigrants (K37) |
| permit duration (C41) | proportion of time spent working legally (J29) |
| penalties for illegal employment (K37) | proportion of time legal immigrants spend in legal jobs (K37) |