Econometric search of undocumented workers in the USA

Yongseung Han (), Eréndira Yareth Vargas López and Myeong Hwan Kim

Global Business and Economics Review, 2021, vol. 24, issue 3, 248-260

Abstract: This study seeks to find where undocumented workers reside in the USA. By postulating that the US destination of an undocumented worker is affected by socio-economic factors, an equation is estimated using the standard panel-data methods. A static panel-data estimation (fixed-effects and random effects) does not reveal a meaningful relation between undocumented workers and other factors. The Arellano-Bond estimation, in which the previous level of undocumented workers are used as a proxy for a network, provides statistically significant relations at the 0.05 level; the number of undocumented workers in a state is determined by the state's socio-economic factors such as economic conditions (e.g., unemployment rate and household income) and social factors necessary to form a network (e.g., foreign-born population, Hispanic population, urban population, the number of households having limited English-speaking ability and the previous level of undocumented workers). Among these factors, the previous level of undocumented workers has the largest impact on the current level of undocumented workers.

Keywords: undocumented worker; illegal immigration; economic migration; real wage; unemployment rate; household income. (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:24:y:2021:i:3:p:248-260

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