Economy-wide effects of reducing illegal immigrants in US employment

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Dixon, Peter, Johnson, Martin and Rimmer, Maureen T (2010) Economy-wide effects of reducing illegal immigrants in US employment. Contemporary Economic Policy, 29 (1). pp. 14-30. ISSN 1074-3529 (print) 1465-7287 (online)


We use an economy-wide model to analyze the effects of three broad programs to reduce illegal immigrants in U.S. employment: tighter border security; taxes on employers; and vigorous prosecution of employers. After looking at macroeconomic industry and occupational effects, we decompose the welfare effect for legal residents into six parts covering changes in: producer surplus and illegal wage rates; skilled employment opportunities for natives; aggregate capital; aggregate legal employment; the terms of trade; and public expenditure. The type of program matters. Our analysis suggests a prima facie case in favor of taxes on employers. (JEL J61, C68)

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Item type Article
DOI 10.1111/j.1465-7287.2010.00208.x
Official URL
Subjects Historical > FOR Classification > 1402 Applied Economics
Historical > FOR Classification > 1605 Policy and Administration
Historical > Faculty/School/Research Centre/Department > College of Business
Current > Division/Research > Centre of Policy Studies (CoPS)
Keywords illegal immigrants, illegal employment, United States, economy-wide effects, migration policy
Citations in Scopus 24 - View on Scopus
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