The Labor Market Effects of Reducing the Number of Illegal Immigrants

  title={The Labor Market Effects of Reducing the Number of Illegal Immigrants},
  author={Andri Chassamboulli and Giovanni Peri},
A controversial issue in the US is how to reduce the number of illegal immigrants and what effect this would have on the US economy. To answer this question we set up a two-country model with search in labor markets and featuring legal and illegal immigrants among the low skilled. We calibrate it to the US and Mexican economies during the period 2000-2010. As immigrants, especially illegal ones, have a worse outside option than natives their wages are lower. Hence their presence reduces the… CONTINUE READING

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