We investigate the effects of US immigration on native workers in a search and matching environment that allows for skill heterogeneity, differential search cost, cross-skill matching and imperfect transferability of human capital across borders. We find that cross-skill matching benefits the...

This paper investigates the macroeconomic and welfare effects of illegal immigration on the native born within a dynamic general equilibrium framework with labor market frictions. A key feature of the model is that job competition is allowed for between domestic workers and illegal immigrants....