We build a general equilibrium model in which both illegal immigration and the size of the informal sector are endogenously determined. In this framework, we show that indirect policy measures such as tax reduction and detection of informal activities can be used as substitutes for border...

This paper considers diversity of the knowledge of expats as a complementary dimension of human capital that may generate spillovers. Such, often intangible, knowledge about foreign markets, management skills, and other complementary information may enhance the productivity of these expats, or...

We build a general equilibrium model in which both illegal immigration and the size of the informal sector are endogenously determined. In this framework, we show that indirect policy measures such as tax reduction and detection of informal activities can be used as substitutes for border...