Minimum wages and the creation of illegal migration

In this paper, we explore employers' decisions regarding the employment of legal and illegal immigrants in the presence of endogenous adjustment cost, minimum wages and an enforcement budget. We show that increasing the employment of legal foreign workers will increase the number of illegal immigrants which will replace the employment of the local population and thus creating illegal migration.

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Year of publication:	2013
Authors:	Epstein, Gil S. ; Heizler, Odelia
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	illegal immigration \| foreign worker \| minimum wages

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Series:	IZA Discussion Papers ; 7220
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	738216852 [GVK] hdl:10419/71617 [Handle]
Classification:	J3 - Wages, Compensation, and Labor Costs ; K42 - Illegal Behavior and the Enforcement of Law
Source:	EconStor

Persistent link: https://www.econbiz.de/10010293108