Undocumented Workers' Employment Across U.S. Business Cycles

18 Pages Posted: 9 May 2014

See all articles by J. David Brown

J. David Brown

IZA Institute of Labor Economics

Serife Genc

Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Julie L. Hotchkiss

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

Myriam Quispe-Agnoli

Federal Reserve Bank of Atlanta

Date Written: July 2014

Abstract

Using matched employer‐employee data from the state of Georgia, this paper investigates how employment of undocumented workers varies along the business cycle and how it differs from the adjustment in employment of documented workers. The cyclical component of undocumented employment is found to be significantly more volatile than the cyclical component of documented employment. Simulation results indicate that complementarities between documented workers and capital account for almost 90% of the difference in measured volatility between documented and undocumented employment.

JEL Classification: E24, J21, J15

Suggested Citation

Brown, J. David and Genc, Serife and Hotchkiss, Julie L. and Quispe-Agnoli, Myriam, Undocumented Workers' Employment Across U.S. Business Cycles (July 2014). Contemporary Economic Policy, Vol. 32, Issue 3, pp. 653-670, 2014. Available at SSRN: https://ssrn.com/abstract=2434874 or http://dx.doi.org/10.1111/coep.12026

J. David Brown (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Serife Genc

Government of the Republic of Turkey - Central Bank of the Republic of Turkey ( email )

Istiklal Cad. 10 Ulus
06100 Ankara, Ankara 06050
Turkey

Julie L. Hotchkiss

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)

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