Illegal immigration and the shadow economy - HAL-SHS - Sciences de l'Homme et de la Société
Article Dans Une Revue International Tax and Public Finance Année : 2017

Illegal immigration and the shadow economy

Résumé

We build a 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 enforcement, in order to counteract illegal immigration. We also find that a welfare-maximizing government will set the tax rate to a lower value, if it includes illegal immigration in its objective function, instead of focusing on the well-being of native workers only.

Dates et versions

halshs-03968483 , version 1 (01-02-2023)

Identifiants

Citer

Carmen Camacho, Fabio Mariani, Luca Pensieroso. Illegal immigration and the shadow economy. International Tax and Public Finance, 2017, 24 (6), pp.1050-1080. ⟨10.1007/s10797-017-9444-5⟩. ⟨halshs-03968483⟩

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