Using administrative data from the state of Georgia, this paper finds that, on average, across all firms, employing undocumented workers reduces a firm’s hazard of exit by 19 percent. The advantage to firms from employing undocumented workers increases as more firms in the industry do so,...

Using administrative data from the state of Georgia, the authors find that average wages among documented workers are lower in industries that employ undocumented workers and that a greater share of undocumented workers in those industries further lowers wages. In addition, undocumented workers...

Using matched employer-employee data from the state of Georgia, this paper investigates how differences in wage responsiveness contribute to the determination of observed wage differentials between documented and undocumented workers. Facing fewer employment opportunities, undocumented workers...

Do firms employing undocumented workers have a competitive advantage? Using administrative data from the state of Georgia, this paper investigates the incidence of undocumented worker employment across firms and how it affects firm survival. Firms are found to engage in herding behavior, being...

Using administrative, individual-level, longitudinal data from the state of Georgia, this paper finds that a documented worker employed by a firm that hires undocumented workers can expect to earn 0.15 percent less than if employed by a firm that does not hire undocumented workers. However, in...

Do firms employing undocumented workers have a competitive advantage? Using administrative data from the state of Georgia, this paper investigates the incidence of undocumented worker employment across firms and how it affects firm survival. Firms are found to engage in herding behavior, being...

The rise in income inequality in developing countries after trade liberalization has been a puzzle for trade theory, which predicts the opposite effect. The authors present a model with imported intermediate goods in which the relative wages of skilled labor can rise due to higher imports of...

The factors behind the increase in the relative wages of skilled workers in developing countries are still not well understood. The authors use data from Peru to analyze the determinants of within-industry share of skilled workers. They use a translog cost function for gross output and are...

This paper uses a rational expectations macroeconomic model in which economic agents formulate the probability about the sustainability of the economic policy—that is, policy credibility—using current and lagged values of government expenditures and lagged values of the inflation rate. The...