A Survey of the Economics of Illegal Migration

Looking for Loopholes : Processes of Incorporation of Illegal Immigrants in the Netherlands

“…In the case of illegal immigration -which in principle takes place in a black market -costs like punishments, fines and deportations affect the cost-benefit calculation both for the immigrants concerned and for their employers. As long as the benefits outweigh the costs, illegal immigration will continue (Borjas 1990, Jahn andStraubhaar 1999). The virtue of these explanations is that they identify a clear 'principle of action' in human behaviour (Coleman 1994).…”

“…A wide ar-ray of legal and administrative measures aiming at systematic exclusion has been introduced since then. Time and again, however, migration scholars observe a wide gap between the 'law in the books' and the 'law in practice' (Cornelius et al 1994, Jahn andStraubhaar 1999). In the Dutch case, this gap received attention in a very sudden manner in 1992 after an El Al Boeing crashed into two high-rise apartment buildings in the Amsterdam Bijlmermeer neighbourhood, even though rumours about large numbers of illegal immigrants who had allegedly resided in the afflicted apartments have never been substantiated.…”

“…Studies on the informal economy indicate that these opportunities exist in one form or another, not just in Third World countries, but also in advanced economies (Castells andPortes 1989, Portes 1994). Economies need a certain degree of activity on the fringes to function smoothly (Jahn and Straubhaar 1999) and governments commonly tolerate at least some forms of informality. Globalisation theory, moreover, suggests that informal economic activities are recently gaining importance in advanced economies, as a result of far-reaching socio-economic transformations.…”

Reducing the Fog? Immigrant Regularization and the State

“…French success derived from the coupling of regularization with increased labor enforcement (Miller ), triggering the contraction of the underground economy (Reyneri ). Thus regularizations are necessary but insufficient to counter irregularity since states must employ additional mechanisms such as worksite inspections and employer sanctions (Jahn and Straubhaar ). However, these mechanisms often encounter political opposition from both immigrant advocacy groups and employers (Ellermann ).…”

Controlling Immigration Manually: Lessons from Moscow (Russia)

“…As a general principle, informal labour provides advantages to employer and worker alike. Employers are able to reduce costs by paying lower wages and avoiding taxes and social insurance payments, while workers are able to avoid paying income tax (Jahn & Straubhaar 1999).. Barriers such as low quotas and the expectation that obtaining legal work permits will involve paying bribes to corrupt officials cause many migrants and employers to opt out of the system in order to cut costs and avoid bureaucratic headaches.…”