Deport or legalize? An Economic Analysis of US Immigration Reform

The prevalence of undocumented workers in the United States is a sensitive issue for U.S. policy makers with numerous policy responses contemplated by several different administrations. This paper examines the impact of possible reforms to U.S. immigration policy with respect to undocumented workers on the U.S. and Mexican economies. Using a global trade and migration model that considers undocumented workers, we find that undocumented workers have a positive impact on the U.S. economy and on the agricultural sector. Legalization of these undocumented workers emerges as the preferred option, although additional considerations may be required to assist the agricultural sector