Abstract
This paper studies the differences in earnings between Mexican legal and illegal immigrants in the United States. The analysis includes a crosssectional examination of the wage differences between legal and undocumented workers as well as a longitudinal analysis examining the impact of legalization on the earnings of previously-undocumented workers. It is shown that the average hourly wage rate of male Mexican legal immigrants in the United States was 41.8% higher than that of undocumented workers while female legal immigrants earned 40.8% more. Though illegal immigrants have lower education and English proficiency, and a shorter period of residence in the United States, than legal immigrants, it is shown that differences in the observed characteristics of legal and illegal immigrants explain only 48% of the log-wage gap between male legal and illegal workers and 43% of the gap for women. An analysis of undocumented immigrants legalized after the 1986 U.S. immigration policy reform shows significant wage growth in the four years following legalization. These gains are due mostly to the change in legal status itself, not to changes in the characteristics of immigrants over time.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Alvarez L (1996) Down from Poverty: Mexico to Manhattan. The New York Times October 9: pp Al–B7
Bailey TR (1987) Immigrant and Native Workers: Contrasts and Competition. Westview Press, Boulder, Colorado
Blinder AS (1973) Wage Discrimination: Reduced Form and Structural Estimates. Journal of Human Resources 8:436–455
Blau F, and Kahn L (1997) Swimming Upstream: Trends in the Gender Wage Differential in the 1980s. Journal of Labor Economics 15:1–42
Bloom D, Grenier G (1993) Language, Employment and Earnings in the United States: SpanishEnglish Differentials from 1970 to 1990. National Bureau of Economic Research Working Paper No. 4584, Cambridge
Borjas GJ (1994) Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s? National Bureau of Economic Research Working Paper No. 4866, Cambridge, Massachusetts
Borjas GJ (1992) National Origin and the Skills of Immigrants in the Postwar Period. In: Borjas G, Freeman R (eds). Immigration and the Workforce. University of Chicago Press, Chicago, 17–47
Borjas GJ (1990) Friends or Strangers: The Impact of Immigrants on the U.S. Economy. Basic Books, New York
Borjas GJ (1987) Self-Selection and the Earnings of Immigrants. American Economic Review 77:531–553
Borjas GJ, Tienda M (1993) The Employment and Wages of Legalized Immigrants. International Migration Review 27:712–747
Carliner G (1995) The Language Ability of U.S. Immigrants: Assimilation and Cohort Effects. National Bureau of Economic Research Working Paper No. 5222, Cambridge, Massachusetts
Chiswick B (1988) Illegal Aliens: Their Employment and Employers. Upjohn Institute for Employment Research, Kalamazoo, Michigan
Chiswick B (1984) Illegal Aliens in the United States Labor Market: An Analysis of Occupational Attainment and Earnings. International Migration Review 18:714–732
Chiswick B (1978) The Effects of Americanization on the Earnings of Foreign-Born Men. Journal of Political Economy 86:897–921
Chiswick B, Miller P (1996) Language Skills and Earnings among Legalized Aliens. Paper presented at the 1997 American Economic Association Meetings, New Orleans, mimeo
Ehrenberg R, Smith RS (1994) Modern Labor Economics: Theory and Public Policy. Harper Collins, New York
Finder A (1995) Despite Tough Laws, Sweatshops Flourish. The New York Times February 6: p. A1
Gonzalez-Baker S (1990) The Cautious Welcome: The Legalization Programs of the Immigration Reform and Control Act. University Press of America, Lanham, Maryland
Heckman J (1979) Sample Selection Bias as Specification Error. Econometrica 47:153–162
Juhn C, Murphy K, Pierce B (1991) Wage Inequality and the Rise in Returns to Skill. Journal of Political Economy 101:410–442
Kleinfeld NR (1993) Immigrant Dream of Plenty Turns to Misery and Regret. The New York Times June 8: Al–B2
Manski CF (1989) Anatomy of the Selection Problem. Journal of Human Resources 24:343–360
Massey D (1987) Do Undocumented Immigrants Earn Lower Wages that Legal Immigrants: New Evidence from Mexico. International Migration Review 21:236–274
North DS, Houston M (1976) The Characteristics and Role of Illegal Aliens in the United States Labor Market: An Exploratory Study. Mimeo, Linton and Co., Washington, D.C.
Oaxaca R (1973) Male-Female Wage Differentials in Urban Labor Markets. International Economic Review 14:693–709
Oaxaca R, Ransom M (1994) On Discrimination and the Decomposition of Wage Differentials. Journal of Econometrics 61:5–21
Orcutt Duleep H, Regets MC (1996a) Admission Criteria and Immigrant Earnings Profiles. International Migration Review 30:571–590
Orcutt Duleep H, Regets MC (1996b) The Elusive Concept of Immigrant Quality: Evidence from 1970 1990. Mimeo, Program for Research on Immigration Policy, The Urban Institute, Washington, D.C.
Portes A, Bach R (1985) Latin Journey: Cuban and Mexican Immigrants in the United States. University of California Press, Berkeley
Ranney S, Kossoudji S (1993) Profiles of Temporary Mexican Labor Migrants to the United States. Population and Development Review 9:475–493
Rayner R (1996) What Immigration Crisis? The New York Times Magazine January 7, 1996
Reichert J, Massey D (1979) Patterns of US Migration from a Mexican Sending Community: A Comparison of Legal and Illegal Immigrants. International Migration Review 13:599–623
Reimers CW (1985) A Comparative Analysis of the Wages of Hispanics, Blacks and NonHispanic Whites. In: Borjas G, Tienda M (eds) Hispanics in the U.S. Economy. Academic Press, Orlando, 27–76
Reuters L (1996) Sweatshop Workers Share $1.1 Million. The New York Times March 9, 1996, p. Al2
Rivera-Batiz FL (1996) English Language Proficiency, Quantitative Skills and the Economic Progress of Immigrants. In: Orcutt Duleep H, Wunnava P (eds) Immigrants and Immigration Policy: Individual Skills, Family Ties and Group Identities. JAI Press, Greenwich, Connecticut
Rivera-Batiz FL (1992) English Language Proficiency and the Earnings of Young Immigrants in U.S. Labor Markets. Policy Studies Review 11:262–274
Rivera-Batiz FL (1990) English Language Proficiency and the Economic Progress of Immigrants. Economics Letters 34:295–300
Rivera-Batiz FL, Sechzer S, Gang I (eds) (1991) U S. Immigration Policy Reform in the 1980s: A Preliminary Assessment. Praeger Publishers, New York
Smith S, Kramer R, Singer A (1996) Characteristics and Labor Market Behavior of the Legalized Population Five Years Following Legalization. Immigration Policy and Research Division, Bureau of International Labor Affairs, U.S. Department of Labor, Washington, D.C.
Taylor JE (1985) Selectivity of Undocumented Mexico-US Migrants and Implications for U.S. Immigration Reform. The Urban Institute, Working Paper No. PDS-85–4
Tienda M, Borjas G, Cordero-Guzman H, Neuman K, Romero M (1991) The Demography of Legalization: Insights form Administrative Records of Legalized Aliens. NORC, University of Chicago, Chicago
Trejo SJ (1997) Why Do Mexican Americans Earn Low Wages? Journal of Political Economy 105:1235–1268
United States Department of Commerce (1993) 1990 U.S. Census of Population and Housing 5% Public use Microdata Sample. Bureau of the Census, Washington DC
United States Department of Labor (1996) Legalized Population Survey Public Use File. Bureau of International Labor Affairs, Washington, D.C.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2004 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Rivera-Batiz, F.L. (2004). Undocumented workers in the labor market: An analysis of the earnings of legal and illegal Mexican immigrants in the United States. In: Zimmermann, K.F., Constant, A. (eds) How Labor Migrants Fare. Population Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24753-1_14
Download citation
DOI: https://doi.org/10.1007/978-3-540-24753-1_14
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-53448-5
Online ISBN: 978-3-540-24753-1
eBook Packages: Springer Book Archive