Abstract This paper studies the labor market effects of both documented and undocumented immigration in a search model featuring nonrandom hiring. As immigrants accept lower wages, they are preferably chosen by firms and therefore have higher job finding rates than natives, consistent with evidence found in US data. Immigration leads to the creation of additional jobs but also raises competition for natives. The dominant effect depends on the fall in wage costs, which is larger for undocumented immigration than it is for legal immigration. The model predicts a dominating job creation effect for the former, reducing natives' unemployment rate, but not for the latter.
Citation Albert, Christoph. 2021. "The Labor Market Impact of Immigration: Job Creation versus Job Competition." American Economic Journal: Macroeconomics , 13 (1): 35-78 . DOI: 10.1257/mac.20190042 Choose Format: BibTeX EndNote Refer/BibIX RIS Tab-Delimited
Salphabeta on December 30th, 2020 at 18:36 UTC »
That's weird, because the Economist had a pretty thorough study that quite clearly showed that if you were a construction worker, your wages were negatively impacted by competing with illegal labor, which is pretty obvious when somebody will do the same job for far less.
Bridgestone14 on December 30th, 2020 at 17:06 UTC »
Did anyone read this paper? The abstract is hard to understand and it doesn't seem to be saying the same thing that the title of this post is saying.
ConfusedMegladon on December 30th, 2020 at 16:22 UTC »
"Exploiting immigrants for cheap labor has a beneficial impact on the United States"