workers may potentially gain from future legalization, with wage increases by as much as 18%.
In this respect, the cost implications for farm employers are clear in that labor costs would
increase if amnesty were to be granted to workers who are currently unauthorized. Whether this
may encourage employers to shift to more capital intensive methods of production over time
would depend on the magnitude of the cost increase and the degree of stringency and
effectiveness of future legislation in controlling illegal immigration and employment.
References
Basu A, Heckman J, Navarro-Lozano S, Urzua S. 2007. “Use of Instrumental Variables in
The Presence of Heterogeneity and Self-Selection: An Application to Treatments of
Breast Cancer Patients,” Health Economics 16: 1133-1157.
Bjorklund, A. and R. Moffitt. 1987. “The Estimation of Wage Gains and Welfare Gains in Self
Selection Models.” The Review of Economics and Statistics, 69(1): 42-49
Blundell, R. and M. Costa Dias. 2002. “Alternative Approaches to Evaluation in Empirical
Microeconomics.” Portuguese Economic Journal 1: 91-115.
Caliendo, M. 2006. Microeconometric Evaluation of Labor Market Policies. Berlin: Springer.
Carroll, D., R. Samardick, S. Bernard, S. Gabbard, T. Hernandez. 2005. Findings from
The National Agricultural Workers Survey (NAWS) 2001 - 2002: A Demographic and
Employment Profile of United States Farm Workers. U.S. Department of Labor, Office of the
Assistant Secretary for Policy, Office of Programmatic Policy, Research Report No. 9. Available
at: http://www.doleta.gov/agworker/report9/naws_rpt9.pdf.
Heckman, J and X. Li. 2004. “Selection Bias, Comparative Advantage and Heterogeneous
Returns to Education: Evidence from China in 2000.” Pacific Economic Review 9(3):
155-171.
Heckman, J. and E. Vytlacil. 2005. “Structural Equations, Treatment Effects and
Econometric Policy Evaluation.” Econometrica 73(3): 669-738.
Heckman, J., J. Tobias and E. Vytlacil. 2001. “Four Parameters of Interest in the Evaluation of
Social Programs.” Southern Economic Journal 68: 210-223.
Heckman, J., J. Tobias, and E. Vytlacil. 2003. “Simple Estimators for Treatment Parameters in
A Latent Variable Framework.” Review of Economics and Statistics 85:748-755.
Heckman, J, S. Urzua and E. Vytlacil. 2006a. “Understanding Instrumental Variables in Models
with Essential Heterogeneity.” The Review of Economics and Statistics. 88(3): 389-432.
19