This paper explores the impact of undocumented as opposed to documented immigration in a model featuring search frictions and non-random hiring that is consistent with novel empirical evidence presented. In this framework, undocumented immigrants' wages are the lowest of all workers due to their...

In this paper we show that highly skilled undocumented migrants are more likely to return home than migrants with low or no skills when illegality causes skill wasteʺ, i.e. when illegality reduces the rate of return of individual capabilities (i.e. skills and human capital) in both the labor...

In this paper we show that highly skilled undocumented migrants are more likely to return home than migrants with low or no skills when illegality causes quot;skill waste,quot; i.e., when illegality reduces the rate of return of individual capabilities (i.e., skills and human capital) in both...

This paper studies the labor market impact of documented and undocumented immigration in a model with search frictions and non-random hiring. Since they accept lower wages, firms obtain a higher match surplus from hiring immigrants rather than natives. Therefore, immigration results in the...

In this paper we show that highly skilled illegal migrants may be more likely to return home than migrants with low or no skills when illegality causes "skill waste," i.e. reduced ability of making use of individual capabilities both in the labor and the financial markets. This result is in...