Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283630 
Year of Publication: 
1985
Series/Report no.: 
Harvard University Migration and Development Program Discussion Paper No. 17
Publisher: 
Harvard University, Center for Population Studies, Cambridge, MA
Abstract: 
In view of proposed immigration reform pertaining to the employment of illegal aliens we model a competitive, risk-averse firm employing legal as well as illegal workers whose wage is effectively a random variable. Inter alia we find that this wage does not affect the scale of the firm's operations; that parametric changes in the wage function of illegal workers have the expected effect on their employment yet do not affect the firm's output level; that a higher output price will result in proportionately more illegal hiring than legal hiring; and that a higher wage for legal workers may result in more of them being employed.
Document Type: 
Working Paper

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