Illegal Immigration, Immigration Quotas, and Employer Sanctions

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Abstract

We investigate the effects of changes in the quota for skilled immigrants on the welfare of native workers, legal immigrants, and illegal immigrants under different levels of employer sanctions, assuming a small open economy with dual labor markets and efficiency wages. We demonstrate that if fines are large(small),increases in the quota are likely to increase(decrease)the welfare of native workers and legal immigrants. Our results suggest that the policy authority has to manipulate the immigration quota and employer sanctions simultaneously in order to increase the welfare of native workers and legal immigrants.

經營と經濟, vol.90(4), pp.1-25; 2011

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