The illegal alien work force, demand for unskilled labor, and the minimum wage

Abstract

Estimates of the illegal alien work force, employment, and the number employed below the legal minimum wage are not available, but are often required for the study of a variety of public policy issues, e.g., immigration and refugee policy, and policy towards the monitoring of minimum wage laws. This paper attempts to fill this void by developing estimates of these quantities. Of equal importance, however, is determining what light this and other related evidence throws upon the oft-expressed view that the demand for unskilled labor at below-legal-minimum wage rates is virtually inelastic. Evidence is presented which contradicts this belief.