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The wage impact of undocumented workers: Evidence from administrative data
Authors:Julie L Hotchkiss  Myriam Quispe‐Agnoli  Fernando Rios‐Avila
Abstract: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.
Keywords:J30  J15
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