Abstract:
One effect of 1986's immigration reform was to make INS inspection of farms more costly relative to other industries. In response, the authors suggest, the INS refocused its enforcement efforts toward industries with a higher concentration of illegals per establishment, especially manufacturing. They test this hypothesis and model the effects of a selective monitoring strategy on the employment choice and wages of illegal workers. The authors find evidence of selective monitoring by the INS and that this policy has redistributed illegal workers from closely to weakly monitored industries. Specifically, they find a shift from the higher-paying manufacturing sector to the agricultural. Copyright 1997 by Oxford University Press.
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