This dissertation consists of three self-contained essays. In the first chapter, I study the labor market impact of documented and undocumented immigration in a search model with non-random hiring that is parameterized based on wage and job finding rate gaps I find in US data. The model predicts that native workers benefit from undocumented immigration due to its strong job creation effect. In the second chapter, we document that immigrants in the US concentrate in large, expensive cities, where their earnings gap to natives is higher, and that they consume less local goods than natives. To explain these facts, we develop a quantitative spatial equilibrium model, in which immigrants consume a fraction of their income at their origin. The mo...