Estimates of the Cyclical Inflow of Undocumented Migrants to the United States

Abstract:

This paper constructs estimates for the inflow of undocumented migrants to the United States using survey-based micro estimates of the number of successful migrations per apprehension and aggregate apprehensions data reported by U.S. Customs and Border Protection. The robustness of the constructed data is determined by comparing the implied stock from the constructed series with previous estimates of undocumented migrants in the United States. The estimates are within the unenumerated-correction margin of error of the post-2000 Census estimates in the literature. Moreover, the analysis in this paper concurs with Hanson and Spilimbergo (1999) finding that the inflow of migrants to the United States is responsive to business cycle conditions.

Immigration and Business Cycle Volatility

Abstract:

This paper finds the responsiveness of a migrant population to economic shifts increases the volatility of output and employment in the United States. In a simple business cycle framework, an immigration model is constructed with an additional population variable that is responsive to changes in productivity and wages. Relative to the classic business cycle model, the model that incorporates immigration increases the volatility of output by about 2 percent and labor volatility by 3 percent. Empirical analysis that uses regional variation between migrant localities finds a larger effect than in the theoretical model. An increase in the percent of the foreign-born labor force increases aggregate employment volatility by 8 percent and the volatility of the aggregate economic variable by 14 percent.