Illegal immigration in a heterogeneous labor market

  title={Illegal immigration in a heterogeneous labor market},
  author={T. Palivos and C. Yip},
  journal={Journal of Economics},
  • T. Palivos, C. Yip
  • Published 2010
  • Economics
  • Journal of Economics
  • This paper examines the effects of illegal immigration in a neoclassical growth model with two groups of workers, skilled and unskilled. We show that although illegal immigration is a boon to a country as a whole, there are distributional effects, whose sign is in general ambiguous. This is because all sources of income of both groups are affected and some of these changes tend to move income in opposite directions. Nevertheless, calibration exercises show that the wealth distribution is likely… CONTINUE READING
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