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, Odelia
Institutions:	Department of Economics, Bar Ilan University
Subject:	illegal immigration \| foreign worker \| minimum wages

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2013-02 10 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/10010861932