In addition to it being illegal to enter the U.S. without a visa or to over-stay one’s visa, it is also illegal for U.S. employers to hire undocumented or “illegal” immigrants. Meanwhile, federal U.S. enforcement of immigration laws tends to concentrate resources on reducing illegal immigration rather than on prosecuting U.S. firms for employing undocumented workers. Using supply and demand analysis, show what would happen to the wage and employment level of undocumented workers if the government pursued more active enforcement of employers. According to your model, what would happen to the wage and employment level of documented workers?

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the wage and employment level of undocumented workers will decrease if th... View the full answer