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DOES EMPLOYING UNDOCUMENTED WORKERS GIVE FIRMS A COMPETITIVE ADVANTAGE? *
Author(s) -
Brown J. David,
Hotchkiss Julie L.,
QuispeAgnoli Myriam
Publication year - 2013
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12009
Subject(s) - business , labour economics , production (economics) , industrial organization , competitive advantage , hazard , process (computing) , demographic economics , economics , microeconomics , marketing , chemistry , organic chemistry , computer science , operating system
Using administrative data from the state of Georgia, this paper finds that, on average, across all firms, employing undocumented workers reduces a firm's hazard of exit by 19 percent. The advantage to firms from employing undocumented workers increases as more firms in the industry do so, decreases with the skill level of the firm's workers, increases with the breadth of a firm's market, and increases with the labor intensity of the firm's production process.