The Wage Impact of Undocumented Workers

FRB Atlanta Working Paper Series No. 2012-4

58 Pages Posted: 16 May 2012

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

Fernando Rios‐Avila

Bard College - The Levy Economics Institute

Date Written: March 2012

Abstract

Using administrative, individual-level, longitudinal data from the state of Georgia, this paper finds that a documented worker employed by a firm that hires undocumented workers can expect to earn 0.15 percent less than if employed by a firm that does not hire undocumented workers. However, in sectors where there are opportunities for task specialization and benefits from communication skills, documented workers can expect to earn a wage premium of less than 1 percent from being employed at a firm that also hires undocumented workers.

Keywords: illegal immigrants, immigration, unauthorized immigration

JEL Classification: J30, J15

Suggested Citation

Hotchkiss, Julie L. and Quispe-Agnoli, Myriam and Rios‐Avila, Fernando, The Wage Impact of Undocumented Workers (March 2012). FRB Atlanta Working Paper Series No. 2012-4. Available at SSRN: https://ssrn.com/abstract=2060667 or http://dx.doi.org/10.2139/ssrn.2060667

Julie L. Hotchkiss (Contact Author)

Federal Reserve Bank of Atlanta ( email )

Research Department
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8198 (Phone)
404-498-8058 (Fax)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Myriam Quispe-Agnoli

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street, NE
Atlanta, GA 30309-4470
United States
404-498-8930 (Phone)
404-498-8956 (Fax)

Fernando Rios‐Avila

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504-5000
United States

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