The Effect of Minimum Wages on Immigrants’ Employment and Earnings

Pia Orrenius and Madeline Zavodny

No 3499, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study examines how minimum wage laws affect the employment and earnings of low-skilled immigrants and natives in the U.S. Minimum wage increases might have larger effects among low-skilled immigrants than among natives because, on average, immigrants earn less than natives due to lower levels of education, limited English skills, and less social capital. Results based on data from the Current Population Survey for the years 1994-2005 do not indicate that minimum wages have adverse employment effects among adult immigrants or natives who did not complete high school. However, low-skilled immigrants may have been discouraged from settling in states that set wage floors substantially above the federal minimum.

Keywords: minimum wage; low-skilled; immigrants (search for similar items in EconPapers)
JEL-codes: J15 J23 J38 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2008-05
New Economics Papers: this item is included in nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Published - published in: Industrial and Labor Relations Review, 2008, 61 (4), 544-563

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Related works:
Journal Article: The Effect of Minimum Wages on Immigrants' Employment and Earnings (2008)
Working Paper: The effect of minimum wages on immigrants' employment and earnings (2008)
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