The Labor Market Experience and Impact of Undocumented Workers

FRB Atlanta Working Paper No. 2008-7c

46 Pages Posted: 20 Mar 2008 Last revised: 6 Jul 2014

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta; Georgia State University - Department of Economics

Myriam Quispe-Agnoli

Federal Reserve Bank of Atlanta

Date Written: June 1, 2008

Abstract

Using administrative data from the state of Georgia, the authors find that a greater share of undocumented workers in an industry has a statistically significant negative impact on the wages of documented workers. The practical impact, however, is small, given the size of the undocumented workforce. In addition, undocumented workers have significantly lower labor supply elasticity, likely as a result of their limited employment and grievance opportunities. Furthermore, the inflow of undocumented workers does more to displace earlier hired undocumented workers than it does to displace documented workers.

Keywords: immigration, wage impact, worker displacement

JEL Classification: J61, J31, J42, F22

Suggested Citation

Hotchkiss, Julie L. and Quispe-Agnoli, Myriam, The Labor Market Experience and Impact of Undocumented Workers (June 1, 2008). FRB Atlanta Working Paper No. 2008-7c. Available at SSRN: https://ssrn.com/abstract=1109169 or http://dx.doi.org/10.2139/ssrn.1109169

Julie L. Hotchkiss (Contact Author)

Federal Reserve Bank of Atlanta ( email )

Research Department
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Georgia State University - Department of Economics ( email )

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Myriam Quispe-Agnoli

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street, NE
Atlanta, GA 30309-4470
United States
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404-498-8956 (Fax)

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