Illegal immigrants = legal citizens

President Bush has recently announced an initiative to grant temporary legal status to illegal immigrants, and this raises a labor economics question. Illegal immigrants come to this country because they can find under-the-table jobs that are beneficial to both employer and employee alike. Employers benefit because they are not bound by minimum wage laws and also avoid a number of taxes. Illegal immigrants benefit because they still make more money then would be attainable in Mexico. If these immigrants were made legal citizens, would the potential benefits enjoyed by the employers disappear? If so, would this lead to an increased unemployment rate among the new citizens? Or do you think that immigrants would still prefer an “illegal” status because it provides more job opportunities?
An interesting article describing the president's decision can be found at
http://www.time.com