This paper explores the impact of undocumented as opposed to documented immigration in a model featuring search frictions and non-random hiring that is consistent with novel empirical evidence presented. In this framework, undocumented immigrants' wages are the lowest of all workers due to their...

International migration is one the greatest challenges in the era of globalization and has become a focus of political debate in recent years. Although the economic effects of migration increase the efficiency of labour markets, some governments have rigorously rejected solutions proposed for...