We build a general equilibrium model in which both illegal immigration and the size of the informal sector are endogenously determined. In this framework, we show that indirect policy measures such as tax reduction and detection of informal activities can be used as substitutes for border...

Kyrkopoulou and Palivos examine the interaction between the informal sector of the economy and undocumented immigration. For this purpose, they use a search and matching model with two sectors, a formal and an informal one. Native workers can work in both sectors, whereas undocumented immigrants...

Using machine learning methods in a difference-in-differences setting, we quantify the population of informal workers generated by an irregular migration shock. We exploit the exogenous variation from the Arab Spring wave on southern Italian coasts, and a rich data on Italian vineyards. We...