Do undocumented migrants earn lower wages than legal immigrants? New evidence from Mexico

"This article examines the extent to which undocumented status lowers wage rates among immigrants to the United States from four Mexican communities. Regression equations were estimated to determine the effect of legal status on wages independent of other demographic, social and economic variables, and special efforts were made to control for possible sample selection biases. Findings suggest that the data are relatively free from selectivity problems that have characterized earlier studies, and that legal status had no direct effect on wage rates earned by male migrants from the four communities. Legal status also had little effect on the kind of job that migrants take in the United States, but it does play an important indirect role in determining the length of time that migrants stay in that country. By reducing the duration of stay, illegal status lowers the amount of employer-specific capital accruing to undocumented migrants, and thereby lowers wage rates relative to legal migrants." Data are for 1982-1983.     

The Occupational Cost of Being Illegal in the United States: Legal Status,Job Hazards,and Compensating Differentials

Considerable research and pervasive cultural narratives suggest that undocumented immigrant workers are concentrated in the most dangerous, hazardous, and otherwise unappealing jobs in U.S. labor markets. Yet, owing largely to data limitations, little empirical work has addressed this topic. Using data from the 2004 and 2008 panels of the Survey of Income and Program Participation, we impute legal status for Mexican and Central American immigrants and link their occupations to Bureau of Labor and Statistics (BLS) data on occupational fatalities and occupational hazard data from the U.S. Department of Labor to explore racial and legal status differentials on several specific measures of occupational risk. Results indicate that undocumented workers face heightened exposure to numerous dimensions of occupational hazard – including higher levels of physical strain, exposure to heights, and repetitive motions – but are less exposed than native workers to some of the potentially most dangerous environments. We also show that undocumented workers are rewarded less for employment in hazardous settings, receiving low or no compensating differential for working in jobs with high fatality, toxic materials, or exposure to heights. Overall, this study suggests that legal status plays an important role in determining exposure to job hazard and in structuring the wage returns to risky work.     

Undocumented Migration to the United States and the Wages of Mexican Immigrants

Prior work has documented the remarkable decline in the real wages of Mexican immigrant workers in the U.S. over the past several decades. Although some of this trend might be attributable to the changing characteristics of the migrants themselves, we argue that a more important change was the circumstances under within Mexican immigrants competed for jobs in the U.S. After 1986 a growing share of Mexican immigrants was undocumented, discrimination against them was mandated by federal law, and enforcement efforts rose in intensity. We combined data from the Mexican Migration Project (MMP) with independent estimates of the percentage undocumented among Mexicans living in the U.S. to estimate a series of regression models to test this hypothesis. Controlling for individual characteristics helps to explain the decline in the wages of immigrants, but does not eliminate the trend, which is only explained fully when the percentage undocumented is added to the model. A key date is 1986, confirmed by a Oaxaca–Blinder decomposition analysis, when undocumented hiring was criminalized and undocumented migration revived after IRCA's legalization programs ended. As the percentage undocumented rose to new heights in the face of employer sanctions, immigrant wages fell below what we would have observed under the former policy regime. Using newly available data from Warren and Warren (2013), we examined how variation in the percentage undocumented by state and year from 1990 through 2009 affected immigrant wages and confirmed a strong negative effect, but the addition of an interaction term to the model indicated that the negative effect was confined largely to undocumented migrants, whose wage penalty rose from 8 to 18 percent as the percentage undocumented rose from its observed minimum to maximum.     

Noncitizen Employment and the Wages of Healthcare Support Workers in the US

This study examines the relative wages of citizens and noncitizens employed as healthcare support workers as well as examines the effect of noncitizen support worker employment on the wages of citizen support workers. Relative wage findings reveal noncitizen support workers with less than eight years of US residency receive a noncitizen-citizen wage discount statistically significantly greater than the legal maximum of 5% below the local prevailing wage. These low relative wage levels could contribute to lower wages for citizen support workers, however elasticity of substitution findings suggest noncitizen support workers are not close substitutes for healthcare support workers who are US citizens. In addition, wage effect findings do not reveal a negative influence of noncitizen employment on the wages of native born US citizen support workers, while these findings reveal a relatively small wage decline for naturalized support workers. These findings are consistent with the citizen status job heterogeneity hypothesis. Nonetheless, finding noncitizen-citizen wage differences does not allow for ruling out the possibility of weak enforcement of prevailing wage legislation and possible employment of undocumented workers.     

Master status or intersectional identity? Undocumented students’ sense of belonging on a college campus

ABSTRACT

Research on undocumented students in the United States often focuses on the challenges they face navigating postsecondary education, rooted in their precarious legal status. The observed influence of legal status on undocumented students’ sense of belonging and academic progress provides compelling evidence that being undocumented functions as a master status – a salient identity that conditions students’ educational incorporation. Yet, this research tends to highlight legal status while deemphasizing or excluding other identities. Our study takes an intersectional approach. Using focus group data with undocumented students at a Hispanic-Serving Institution, we show that students rarely identify legal status in isolation or implicate it as the sole source of adversity. Instead, students’ reveal a sense of belonging rooted in multiple dimensions of identity including ethnicity and class. This study reconsiders the utility of the master status concept in favour of an intersectional one for a comprehensive picture of undocumented students’ educational incorporation.     

Traces in the shadow: Occupational outcomes of previously undocumented migrants in Italy

Using a representative sample of currently legal third-country immigrants in Italy, obtained from the Social Condition and Integration of Foreign Citizens survey, this article examines the long-term labour market consequences of previous undocumented spells. First, formerly undocumented immigrants are identified using retrospective information on respondents' legal status. Second, immigrants are classified according to the duration of irregular spells before the achievement of the first residence permit. Third, current labour market outcomes are investigated to account for the endogeneity underlying the previous undocumented history. Results show that even though formerly undocumented immigrants are more likely to participate in the labour market, they are more likely to be employed in underqualified occupations than continuously legal immigrants. The duration of the irregular experience affects occupational qualification negatively, among both men and women. The lack of legal entry channels and policies to plan and regulate migration to Italy may reinforce labour market segmentation, exposing migrants to long-term occupational downgrade.     

The Effects of Prevailing Wage Laws: A Comparison of Individual Workers'' Wages Earned on and off Prevailing Wage Construction Projects

I evaluate the effects of prevailing wage laws using a unique data set that shows the wages paid to workers on prevailing wage projects and the wages paid to the same workers during the same time period for work on projects not covered by prevailing wage regulations. The wage comparison shows that workers are generally paid more for work on prevailing wage projects than they are for work on non-prevailing wage projects. Thus, prevailing wage laws likely do increase the cost of public construction. In addition, to the extent that the quality of construction is improved, prevailing wage laws appear to be an inefficient mechanism by which to achieve additional quality, as the regulations often result in workers being paid more than they earn in the private market.     

Native‐Migrant Wage Differential Across Occupations: Evidence from Australia

We investigate wage differential by migrant status across white‐collar and blue‐collar occupations in Australia. Migrants are observed to have a higher wage; this difference, however, does not exist once we control for covariates. The unconditional wage differential varies over wage distribution as well as by occupation. Significant wage differentials are found above the median: positive for white‐collar workers and negative for blue‐collar workers. Using recently developed decomposition methods based on Firpo, Fortin, and Lemieux (2009) we decompose wage differentials across their distribution. Overall, the wage advantage of migrants reflects their superior labour market characteristics, and in particular, their levels of education. We find that English language proficiency plays an important role in wage differences among immigrants from non‐English speaking countries.     

Direct and indirect effects of unionization on the wage levels of nurses: A case study of New Jersey hospitals

This study examines the determination of wage rates for nurses in hospital employment. Of particular concern is the effect of the recent increase in unionization by nurses on their wages, both directly and indirectly via threats from competing hospitals’ unionization. To improve on earlier work, the data are disaggregated and gathered from only one state to standardize for the legal, licensing, and reimbursement systems. We also look at the difference between highly skilled professional nurses, RN’s, and more general and less professional nurses, LPN’s. The results show that working conditions and competition in the market influence the wage rate as one would expect. The unionization of nurses, however, affects the wage levels differently for the two groups. We would like to thank Professors Robert Higgs and Alan Childs of Lafayette College, Professor David Fairris of Williams College, Professor James C. Luzier of Muhlenberg College, and an anonymous referee for their helpful comments and suggestions.     

The effects of prevailing wage laws: A comparison of individual workers’ wages earned on and off prevailing wage construction projects

I evaluate the effects of prevailing wage laws using a unique data set that shows the wages paid to workers on prevailing wage projects and the wages paid to the same workers during the same time period for work on projects not covered by prevailing wage regulations. The wage comparison shows that workers are generally paid more for work on prevailing wage projects than they are for work on nonprevailing wage projects. Thus, prevailing wage laws likely do increase the cost of public construction. In addition, to the extent that the quality of construction is improved, prevailing wage laws appear to be an inefficient mechanism by which to achieve additional quality, as the regulations often result in workers being paid more than they earn in the private market. This research was done originally for the Program Review and Investigations Committee of the Kentucky State Legislature. I thank the staff of the Program Review and Investigations Committee and the Legisla-tive Research Commission for assistance with data collection and Mark Berger for helpful comments. Due to confidentiality requirements, the data cannot be made available.     

The relative effect of unionization and interjurisdictional competition on municipal wages

This study analyzes the effect on municipal employee wages of interjurisdictional competition in municipal service markets. The impact of market conditions are analyzed utilizing a bureaucracy model of local governmental decision making. The study develops hypotheses concerning the degree of competition in this market, constructs empirical measures of competition, and investigates the relationship between competition and wage levels for three categories of municipal workers. The empirical results suggest that local market conditions may be as important a determinant of local wages as local labor market conditions, including union membership. Also, the wage effect of unionization appears to be greater in less competitive local government environments. Financial support from the Earhart Foundation is gratefully acknowledged. We would also like to thank Werner Hirsch, Roger Folsom, and Geoffrey Nunn for helpful comments.     

From political opportunities to niche-openings: the dilemmas of mobilizing for immigrant rights in inhospitable environments

This article examines how undocumented immigrants mobilize for greater rights in inhospitable political and discursive environments. We would expect that such environments would dissuade this particularly vulnerable group of immigrants from mobilizing in high profile campaigns because such campaigns would carry high risks (deportation) and have little chance of success. However, we have witnessed many mobilizations by undocumented immigrants in both Europe and the United States over the past 20 years. This article uses the case of undocumented youths in the United States (DREAMers) to examine how a group of undocumented immigrants have overcome important barriers and become a powerful voice for immigrant rights in the country. The article suggests that while undocumented immigrants faced inhospitable contexts, cracks and “niche-openings” they continued to present themselves to groups with the right set of cultural, legal, and economic attributes. Immigrants in possession of these attributes (in this case, youth) could target a niche-opening and argue that they are particularly deserving of legalization. This article also highlights an important dilemma: In contexts characterized by general closure and hostility, narrow mobilizations targeting niche-openings provide the only path to legal status for some, but they can also differentiate (discursively and legally) between “deserving” and “undeserving” undocumented immigrants. Differentiation can contribute to stratifying the immigrant population, with those deemed more deserving facing greater rights and entitlements and those deemed less deserving facing greater restrictions and repression. This carries the risk of magnifying normative and legal inequalities between immigrant groups while introducing many points of conflict within the broader immigrant rights movement.     

Two Components of Wage Gaps Induced by Individual-level Variables: Intra-firm or Inter-firm?

Individual-level variables such as gender, education, occupation, and employment type are well-known factors that induce wage gaps in the labor market. This article aims to divide wage gaps into two components—those arising within each firm (the intra-firm wage gap) and those arising between different firms (the inter-firm wage gap)—and measure their respective proportions by individual-level variables, as studies suggest that each wage gap based on an individual-level variable has a unique mix of an intra-firm and inter-firm wage gap. This measurement can help enrich investigation into the generative process of wage gaps and formulate effective labor policies to reduce them. Accordingly, we compared the coefficients of the independent variables of the wage function estimated by a pooled ordinary least squares model and a fixed-effect model, using nationwide employer–employee matching data collected by the Japanese government. We found that wage gaps by gender and employment type mostly consist of intra-firm wage gaps, and those by education and occupation have a larger share of inter-firm wage gaps. The findings suggest that different research strategies are required to investigate the generative process of each wage gap, and that regulations on and interventions in organizational processes are important to reduce wage gaps based on gender and employment type.     

Comparison of two methods for estimating the number of undocumented Mexican adults in Los Angeles County

This article compares 2 different methods for estimating the number of undocumented Mexican adults in Los Angeles County. The 1st method, the survey-based method, uses a combination of 1980 census data and the results of a survey conducted in Los Angeles County in 1980 and 1981. A sample was selected from babies born in Los Angeles County who had a mother or father of Mexican origin. The survey included questions about the legal status of the baby's parents and certain other relatives. The resulting estimates of undocumented Mexican immigrants are for males aged 18-44 and females aged 18-39. The 2nd method, the residual method, involves comparison of census figures for aliens counted with estimates of legally-resident aliens developed principally with data from the Immigration and Naturalization Service (INS). For this study, estimates by age, sex, and period of entry were produced for persons born in Mexico and living in Los Angeles County. The results of this research indicate that it is possible to measure undocumented immigration with different techniques, yet obtain results that are similar. Both techniques presented here are limited in that they represent estimates of undocumented aliens based on the 1980 census. The number of additional undocumented aliens not counted remains a subject of conjecture. The fact that the proportions undocumented shown in the survey (228,700) are quite similar to the residual estimates (317,800) suggests that the number of undocumented aliens not counted in the census may not be an extremely large fraction of the undocumented population. The survey-based estimates have some significant advantages over the residual estimates. The survey provides tabulations of the undocumented population by characteristics other than the limited demographic information provided by the residual technique. On the other hand, the survey-based estimates require that a survey be conducted and, if national or regional estimates are called for, they may require a number of surveys. The residual technique, however, also requires a data source other than the census. However, the INS discontinued the annual registration of aliens after 1981. Thus, estimates of undocumented aliens based on the residual technique will probably not be possible for subnational areas using the 1990 census unless the registration program is reinstituted. Perhaps the best information on the undocumented population in the 1990 census will come from an improved version of the survey-based technique described here applied in selected local areas.     

The sociodemographic characteristics of Mexican immigrant status groups: implications for studying undocumented Mexicans

"Based on Warren and Passel's...estimate that nearly two-thirds of Mexican-born noncitizens entering the U.S. during 1975-80 and included in the 1980 Census are undocumented immigrants, this article uses the 1980 Public Use Microfiles to delineate four Mexican origin immigrant status groups--post 1975 Mexican-born noncitizens, pre-1975 Mexican-born noncitizens, self-reported naturalized citizens, and native-born Mexican-Americans." It is found that "the pattern of sociodemographic differences among these groups provides support for the idea that the first two categories contain a substantial fraction of undocumented immigrants. These two groups (especially the first) reveal characteristics that one would logically associate with undocumented immigrants--age concentration (in young adult years), high sex ratios, low education and income levels, and lack of English proficiency."     

Aging and undocumented: The sociology of aging meets immigration status

Being undocumented is strongly correlated with low wages, employment in high risk occupations, and poor healthcare access. We know surprisingly little about the social lives of older undocumented adults despite the vast literature about youth and young undocumented migrants. Literature about the immigrant health paradox casts doubts on the argument that unequal social conditions translate to poorer self-reported health and mortality, but few of these studies consider immigration status as the dynamic variable that it is. Reviewing research about older migrants and minorities, I point to the emergence of undocumented older persons as a demographic group that merits attention from researchers and policymakers. This nexus offers important lessons for understanding stratification and inequality. This review offers new research directions that take into account multilevel consequences of growing old undocumented. Rather than arguing that older-aged undocumented migrants are aging into exclusion, I argue that we need careful empirical research to examine how the continuity of exclusion via policies can magnify inequalities on the basis of immigration status and racialization in older age.     

When Do Papers Matter? An Institutional Analysis of Undocumented Life in the United States

This article assesses how two key institutions differentially shape immigrants’ relationship to their rights in American society. We draw on over 200 in‐depth interviews to argue that there is a stark difference between how schools encourage undocumented youth to view themselves as equal members of US society and how undocumented workers are marginalized in the workplace. We find that even as schools track and stratify students, they also foster a culture of meritocracy between documented and undocumented youth. Schools ultimately render immigration status irrelevant as undocumented youth learn to navigate the primary institution of this stage of their lives. Conversely, immigration status is central to the experience of undocumented workers, who develop a particular set of survival skills that help them live and work successfully in the United States without being detected while also erecting a barrier between themselves and any additional rights they may be afforded.     

On-the-job training and starting wages

Human capital theory predicts that training should reduce starting wages, yet this rela-tionship remains empirically undocumented. Estimation of how training affects wages must control heterogeneity bias. I do this by estimating firstdifference starting wage regressions on a sample of workers from the Employment Opportunities Pilot Project (EOPP) data. I find that on-the-job training has a statistically significant effect on starting wages.     

The class‐origin wage gap: heterogeneity in education and variations across market segments

This paper uses unique population‐level matched employer–employee data on monthly wages to analyse class‐origin wage gaps in the Swedish labour market. Education is the primary mediator of class origin advantages in the labour market, but mobility research often only considers the vertical dimension of education. When one uses an unusually detailed measure of education in a horizontal dimension, the wage gap between individuals of advantaged and disadvantaged class origin is found to be substantial (4–5 per cent), yet considerably smaller than when measures are used which only control for level of education and field of study. This is also the case for models with class or occupation as outcome. The class‐origin wage gap varies considerably across labour market segments, such as those defined by educational levels, fields of education, industries and occupations in both seemingly unsystematic and conspicuous ways. The gap is small in the public sector, suggesting that bureaucracy may act as a leveller.     

Upgraded to Bad Jobs: Low‐Wage Black Women's Relative Status since 1970

Labor market changes complicate the analysis of black women's status relative to white women because education, occupational attainment, and race–gender are now less predictive of earnings. Low‐wage black women's relative status has improved somewhat from 1970 to 2000, contrary to the well‐documented decrease in relative status reported for all black women wage earners since 1980, but their dramatic occupational upgrading was not responsible for the trend. White‐collar occupational positions formerly responsible for white women's relative earnings advantage no longer deliver that reward, as restructuring has produced a proliferation of bad jobs across occupational groups. This study argues that increasing exposure to precarious work is crucial to understanding changes in low‐wage black women's relative economic status since 1970.