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Minimum Wages and the Creation of Illegal Migration

Gil Epstein () and Odelia Heizler (Cohen)

No 2013-02, Working Papers from Bar-Ilan University, Department of Economics

Abstract: 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.

Keywords: illegal immigration; foreign worker; minimum wages (search for similar items in EconPapers)
JEL-codes: J3 K42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-iue, nep-lab and nep-mig
Date: 2013-02
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Journal Article: Minimum wages and the creation of illegal migration (2013) Downloads
Working Paper: Minimum wages and the creation of illegal migration (2013) Downloads
Working Paper: Minimum Wages and the Creation of Illegal Migration (2013) Downloads
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