The wage impact of undocumented workers: Evidence from administrative data | Zendy

Hotchkiss Julie L. | Zendy; QuispeAgnoli Myriam | Zendy; RiosAvila Fernando | Zendy

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The wage impact of undocumented workers: Evidence from administrative data

Author(s) -

Hotchkiss Julie L.,

QuispeAgnoli Myriam,

RiosAvila Fernando

Publication year - 2015

Publication title -

southern economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.762

H-Index - 58

eISSN - 2325-8012

pISSN - 0038-4038

DOI - 10.1002/soej.12020

Subject(s) - earnings , wage , percentage point , point (geometry) , labour economics , demographic economics , business , longitudinal data , hourly wage , economics , accounting , finance , demography , sociology , geometry , mathematics

Using administrative, individual level, longitudinal data from the state of Georgia, this article finds that rising shares of undocumented workers results in higher earnings for documented workers, but by a small amount. A one percentage point increase in the share of undocumented workers in a documented worker's county/industry results in an average wage boost of 0.44%. Within the firm, a one percentage point increase in the percent of undocumented workers employed by the firm boosts wages by 0.09% (0.11, 0.12, and 0.04 in low, medium, and high skill firms, respectively). Potential explanations for a positive wage impact are discussed.

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