Reducing Illegal Migrants in the U.S.: A Dynamic CGE Analysis

Peter Dixon, Martin Johnson and Maureen Rimmer

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: 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.

Keywords: Illegal immigration; dynamic modeling; U S immigration policy (search for similar items in EconPapers)
JEL-codes: C68 J61 (search for similar items in EconPapers)
Date: 2008-07
New Economics Papers: this item is included in nep-mac and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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