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Gender Differences in the Labor Market Impact of IRCA
Midterm #2
12
Economics
Undergraduate 4
11/21/2012

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Cards

Term
How did the 1986 amnesty impact the employment and wages of unauthorized male and female immigrants?
Definition
Term
What is the neoclassical model of labor-leisure choice?
Definition
Legalization can affect labor supply decisions of immigrants differently depending on their skill level.
Term
What are the three potential effects of IRCA on the labor market outcomes of undocumented immigrants?
Definition

1. Staying employed, but earning higher wages

 

2. Exiting employment due to higher reservation wages and increased access to social services

 

3. Entering employment due to higher returns to skill

Term
What was the purpose of IRCA?
Definition
To stem the flow of increased illegal immigration into the United States.
Term
What were the 3 strategies employed by IRCA to accomplish its goals?
Definition

1. Increased INS resources for border enforcement

 

2. Introduced employer sanctions for knowingly hiring undocumented workers

 

3. Offered 2 amnesty programs to legalize resident aliens

Term
How many people did IRCA legalize?
Definition

Total: 2.7 million undocumented immigrants acquired legal permanent resident (LPR) status.

 

a) General Program - amnesty to 1.6 million illegal aliens

 

b) SpecialAgricultural Worker (SAW) program - LPR status to 1.1 million undocumented workers.

Term
What were the expectated impacts that IRCA would have on undocumented workers?
Definition

"Out of the shadows"

 

Improve working conditions

 

Reducing workplace vulnerabilities

 

Increase job mobility

 

Increase wages

Term
Describe in general terms the quasi-experimental design or methodology used in the "Gender Differences in the Labor Market Impact of IRCA's Amnesty Provisions" article. 
Definition
1. An estimate of the relative labor market effect of IRCA's main amnesty program is given by 
Term
Describe the data sets used for the analysis in the "Gender Differences in the Labor Market Impact of IRCA's Amnesty Provisions" article. Who were used as a control group? Who were the treated group?
Definition

Treatment Group: Newly legalized under IRCA's main amenesty program.

 

Comparison Group:

- Ideally, randomly selected group of undocumented immigrants ineligible for amnesty.

 

- That isn't possible (everyone was legalized), so instead they use a sample of Hispanic natives with similar ethnicity, gender composition, age, and labor market experience.

 

- Allows them to control for concurrent business cycles.

Term
What were the data sets used in the analysis in the "Gender Differences in the Labor Market Impact of IRCA's Amnesty Provisions" article?
Definition

Survey #1: The Legalized Population Survey (LPS)

- A nationally representative dataset designed to analyze the impact of IRCA's main amnesty program on the legalized population

 

Survey #2: The National Longitudinal Survey of Youth (NLSY79)

- A nationally representative sample of 12,686 civilian young men and women aged 14-21 as of December 31, 1978. This cohort was interviewed annually from 1979 through 1994.

Term
What were the general findings of the study in the "Gender Differences in the Labor Market Impact of IRCA's Amnesty Provisions" article?
Definition

1. Employment rates fell and unemployment rates rose for the newly legalized male population relative to their comparison group.

 

2. Among immigrant women, employment rates fell but transitions out of the workforce increased relative to Hispanic natives.

 

3. Furthermore, legalization likely enhanced the wage growth of newly legalized men and women.

Term
What were the overall effects of the amnesty according to the study in the "Gender Differences in the Labor Market Impact of IRCA's Amnesty Provisions" article?
Definition

Amnesty may have:

 

1. Increased the quality of job matches

 

2. Increased job mobility, particularly of men

 

3. Increased eligibility for social services and reduced labor market participation, particularly for women

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