Understanding the Effects of Legalizing Undocumented Immigrants

Abstract

This paper investigates the consequences of the legalization of around 600,000 immigrants by the unexpectedly elected Spanish government of Zapatero following the terrorist attacks of March 2004 (Garcia-Montalvo, 2011). Using detailed data from payroll-tax revenues, we estimate that each newly legalized immigrant increased local payroll-tax revenues by 4,189 euros on average. This estimate is only 55 percent of what we would have expected from the size of the influx of newly documented immigrants, which suggests that newly legalized immigrants probably earned lower wages than other workers and maybe affected the labor-market outcomes of those other workers. We estimate that the policy change deteriorated the labor-market outcomes of some low-skilled natives and immigrants and improved the outcomes of high-skilled natives and immigrants. This led some low-skilled immigrants to move away from high-immigrant locations. Correcting for internal migration and selection, we obtain that each newly legalized immigrant increased payroll-tax revenues by 4,801 euros, or 15 percent more than the estimates from local raw payroll-tax revenue data. This shows the importance of looking both at public revenue data and the labor market to understand the consequences of amnesty programs fully.

Thermometry in the quantum regime: recent theoretical progress

“…Equation (58) thus enables a totally unrestricted analysis of the thermal sensitivity of the probe, including arbitrarily low temperatures and strong probe-system interactions. The resulting QFI of the probe can be obtained by using techniques from Gaussian metrology [167,168,169], and reads .…”

How do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession

“…4 Second, we contribute to the literature on market outcomes of documented and undocumented immigrants. There are works showing how undocumented immigrants have on average worse labor market outcomes than documented immigrants (see, e.g., Borjas and Tienda (1993); Kossoudji and Cobb-Clark (2002); Kaushal (2006); Amuedo-Dorantes et al 2007; Fasani (2015); Monras et al (2018)). This effect of legal status on labor market outcomes may be related to the restricted set of job opportunities for undocumented immigrants or their bargaining power relative to employers, which is lower than the one of immigrants with a regular residence permit.…”

How Do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession

“…4 Second, we contribute to the literature on market outcomes of documented and undocumented immigrants. There are works showing how undocumented immigrants have on average worse labor market outcomes than documented immigrants (see, e.g., Borjas and Tienda (1993); Kossoudji and Cobb-Clark (2002); Kaushal (2006); Amuedo-Dorantes et al (2007);Fasani (2015); Monras et al (2018)). This effect of legal status on labor market outcomes may be related to the restricted set of job opportunities for undocumented immigrants or their bargaining power relative to employers, which is lower than the one of immigrants with a regular residence permit.…”