This paper analyses the relationship between regular and irregular migration taking into account the migration network effect and the network creation mechanism. We assume that migrants can obtain a high payoff only if a critical mass of migrants is reached in the destination country. If...

The debate on the immigration policies in OECD countries has turned its attention towards illegal migrants. Given that migration flows are determined by immigration laws, the probability of potential detection, penalties for unauthorised migrants and their employers, and on income differences...

This paper looks at the situation of legal immigrants who employ illegal immigrants to provide them with various services. This enables the legal immigrants to allocate more time to other work, thereby increasing their earnings. Illegal immigrants employed by legal immigrants may specialize in...