In addition to it being illegal to enter the US without a visa or to over-stay one’s visa, it is also illegal for US employers to hire undocumented or “illegal” immigrants. Meanwhile, federal US enforcement of immigration laws tends to concentrate resources on reducing illegal immigration rather than on prosecuting US firms for employing undocumented workers. Using supply and demand analysis, show what would happen to the wage and employment level of undocumented workers if the government pursued more active enforcement of employers. According to your model, what would happen to the wage and employment level of documented workers? (please explain with diagram)

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter30: The Labor Market
Section: Chapter Questions
Problem 10E
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  • In addition to it being illegal to enter the US without a visa or to over-stay one’s visa, it is also illegal for US employers to hire undocumented or “illegal” immigrants. Meanwhile, federal US enforcement of immigration laws tends to concentrate resources on reducing illegal immigration rather than on prosecuting US firms for employing undocumented workers. Using supply and demand analysis, show what would happen to the wage and employment level of undocumented workers if the government pursued more active enforcement of employers. According to your model, what would happen to the wage and employment level of documented workers? (please explain with diagram)
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