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Modes of Entry, Correlated Productivity, and the Global Impacts of U.S. Immigration Reform

I present a general equilibrium model and quantitative evidence to gain an understanding of the economic consequences of U.S. immigration reform. Workers choose a country in which to live, an occupation in which to work, and an entry mode for migration to the destination country. Calibrating the model, I find the main consequence of reducing family visas is the increase in illegal immigration, which attenuates the wage impact on the United States and foreign countries. My analysis suggests that the recent policy proposals centered around dramatic cuts to family-visas are unlikely to be an effective method in reducing low-skill immigration.