Economy-wide effects of reducing illegal immigrants in US employment

Peter Dixon, Martin Johnson, Maureen Rimmer

    Research output: Contribution to journalArticleResearchpeer-review

    25 Citations (Scopus)


    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.
    Original languageEnglish
    Pages (from-to)14 - 30
    Number of pages17
    JournalContemporary Economic Policy
    Issue number1
    Publication statusPublished - 2011

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