Abstract
We introduce a government budget constraint into an illegal immigration model, and show that the effect of increasing internal enforcement of immigration laws on the host country’s disposable national income depends on the mix of employer fines and income taxation used to finance the added enforcement. These issues are addressed under alternative assumptions about (a) the ability of host country employers to discern between legal and illegal workers, and (b) host country labor market conditions. Empirical evidence for the United States indicates that the employer sanctions program may have had a negative impact on disposable national income.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Altonji J, Card D (1990) The effects of immigration on the labor market outcomes of natives. In: Freeman R, Abowd J (eds) Immigration, trade and the labor market. University of Chicago Press, Chicago
Bean F, Espenshade T, White M, Dymowski R (1990) Post-IRCA changes in volume and composition of undocumented migration to the United States: An assessment based on apprehensions data. In: Bean F, Edmonston B, Passel J. (eds) Undocumented migration to the United States. Urban Institute Press, Washington, DC
Becker G (1968) Crime and punishment: An economic approach. J Polit Econ 76:169–217
Bond E, Chen T (1987) The welfare effects of illegal immigration. J Int Econ 23:315–328
Borjas G (1994) The economics of immigration. J Econ Lit 32:1667–1717
Borjas G (1990) Friends or strangers: The impact of immigrants on the US economy. Basic Books, New York
Borjas G, Freeman R, Katz L (1992) On the labor market effects of immigration and trade. In: Borjas G, Freeman R (eds) Immigration and the workforce. University of Chicago Press, Chicago
Borjas G, Ramey V (1992) Foreign competition, market power and wage inequality: Theory and evidence. Mimeo, University of California, San Diego
Campos J, Lien D (1995) Political instability and illegal immigration. J Pop Econ 8:23–33
Card D (1990) The impact of the mariel boatlift on the Miami labor market. Ind Lab Rel Rev 43:245–258
Chiswick B (1988) Illegal aliens: Their employment and employers. WE Upjohn Institute, Kalamazoo
Christ C (1968) A simple macroeconomic model with a government budget restraint. J Polit Econ 76:53–67
Cornelius W (1990) Impacts of the 1986 US immigration law on emigration from rural Mexican sending communities. In: Bean F, Edmonston B, Passel J (eds) Undocumented migration to the United States. Urban Institute Press, Washington DC
Crane K, Asch B, Heilbrunn J, Cullinane D (1990) The effect of employer sanctions on the flow of undocumented immigrants to the United States. Urban Institute Press, Washington DC
Djácic S (1987) Illegal aliens, unemployment and immigration policy. J Dev Econ 25:235–249
Espenshade T (1990) Undocumented migration to the United States: evidence from a repeated trials model. In: Bean F, Edmonston B, Passel J (eds) Undocumented migration to the United States. Urban Institute Press, Washington DC
Ethier W (1986) Illegal immigration: The host country problem. Am Econ Rev 76:56–71
Filer R (1992) The effect of immigrant arrivals on migratory patterns of native workers. In: Borjas J, Freeman R. (eds) Immigration and the workforce. University of Chicago Press, Chicago
Massey D, Donato K, Liang Z (1990) Effects of the immigration reform and control act of 1986: Preliminary date from Mexico. In: Bean F, Edmonston B, Passel J (eds) Undocumented migration to the United States. Urban Institute Press, Washington DC
Passel J (1986) Undocumented immigration. Annals Am Acad Polit & Soc Sci 487:181–200
Polinsky M, Shavell S (1979) The optimal tradeoff between the probability and magnitude of fines. Am Econ Rev 69:880–891
Simon J (1989) The economic consequences of immigration. Blackwell, Cambridge
Sorensen E, Bean F, Ku L, Zimmermann W (1992) Immigrant categories and the US job market, Urban Institute Report 92-1. Urban Institute Press, Washington DC
Stigler G (1970) The optimal enforcement of laws. J Polit Econ 78:526–536
US immigration and naturalization service (1989) International migration to the United States. In: The President’s comprehensive triennial report on immigration 1989. US Government Printing Office, Washington DC
Warren R, Passel J (1987) A count of the uncountable: Estimates of undocumented aliens counted in the 1980 United States census. Demography 24:375–393
Weintraub S, Cardenas G (1984) The use of public services by undocumented aliens in Texas. Policy research project report. Lyndon B Johnson School of Public Affairs. University of Texas, Austin
Winegarden C, Khor L (1991) Undocumented immigration and unemployment of US youth and minority workers: Econometric evidence. Rev Econ Stat 73:105–112
Woodrow K, Passel J (1990) Post-IRCA undocumented immigration to the United States: An assessment based on the June 1988 CPS. In: Bean F, Edmonston B, Passel J (eds) Undocumented migration to the United States. Urban Institute Press, Washington DC
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Bucci, G.A., Tenorio, R. On financing the internal enforcement of illegal immigration policies. J Popul Econ 9, 65–81 (1996). https://doi.org/10.1007/PL00013276
Received:
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/PL00013276