Guest Workers in the Underground Economy

Arbeitspapier

Guest-worker programs have been providing rapidly growing economies with millions of temporary foreign workers over the last couple of decades. With the duration of stay strictly limited by program rules in most of the host countries and wages paid to guest workers often set at sub-market levels, many of the migrants choose to overstay and seek employment in the underground economy. This paper develops a general-equilibrium model that relates the flow of guest workers transiting to the underground economy to the rules of the program, enforcement measures of the host country and market conditions facing migrants at home and abroad.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CReAM Discussion Paper Series ; No. 24/13

Classification and Topics

• Classification: Wirtschaft ; International Migration
• Subject: Temporary migration ; undocumented workers ; underground economy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Djajic, Slobodan ; Mesnard, Alice
• Event: Veröffentlichung
• (who): Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London
• (where): London
• (when): 2013

Further information

• Last update: 10.03.2025, 11:44 AM CET