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:	2013-02
Authors:	Epstein, Gil S. ; Heizler (Cohen), Odelia
Institutions:	Institute for the Study of Labor (IZA)
Subject:	foreign worker \| illegal immigration \| minimum wages

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	published in: Economics Bulletin, 2013, 33 (1), 434-441 Number 7220 12 pages
Classification:	J3 - Wages, Compensation, and Labor Costs ; K42 - Illegal Behavior and the Enforcement of Law
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010691507