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Minimum wages and the labor market effects of immigration

Anthony Edo and Hillel Rapoport
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Anthony Edo: CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique

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Abstract: This paper exploits the non-linearity in the level of minimum wages across U.S. States created by the coexistence of federal and state regulations to investigate the labor market effects of immigration. We find that the impact of immigration on the wages and employment of native workers within a given state-skill cell is more negative in States with low minimum wages and for workers with low education and experience. That is, the minimum wage tends to protect native workers from competition induced by low-skill immigration. The results are robust to instrumenting immigration and state effective minimum wages, and to implementing a difference-in-differences approach comparing States where effective minimum wages are fully determined by the federal minimum wage to States where this is never the case.

Keywords: Immigration; Minimum wages; Labor markets (search for similar items in EconPapers)
Date: 2019-12
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02301124
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Published in Labour Economics, Elsevier, 2019, 61, ⟨10.1016/j.labeco.2019.101753⟩

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Journal Article: Minimum wages and the labor market effects of immigration (2019) Downloads
Working Paper: Minimum wages and the labor market effects of immigration (2019)
Working Paper: Minimum Wages and the Labor Market Effects of Immigration (2018) Downloads
Working Paper: Minimum Wages and the Labor Market Effects of Immigration (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02301124

DOI: 10.1016/j.labeco.2019.101753

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