One effect of 1986's immigration reform was to make INS inspection of farms more costly relative to other industries. In response, we suggest, the INS refocused its enforcement efforts toward industries with a higher concentration of illegals per establishment, especially manufacturing. We test this hypotheses and model the effects of a selective monitoring strategy on the employment choice and wages of illegal workers. We find evidence of selective monitoring by the INS and that this policy has redistributed illegal workers from closely to weakly monitored industries. Specifically, we find a shift from the higher-paying manufacturing sector to the agricultural.
|Original language||English (US)|
|Number of pages||13|
|State||Published - Jan 1997|
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics