Minimum Wages and the Creation of Illegal Migration

Gil Epstein and Heizler (Cohen), Odelia ()
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Heizler (Cohen), Odelia: Academic College of Tel-Aviv Yaffo

No 7220, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: foreign worker; illegal immigration; minimum wages (search for similar items in EconPapers)
JEL-codes: J3 K42 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2013-02
New Economics Papers: this item is included in nep-iue, nep-lab, nep-lma and nep-mig
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Published - published in: Economics Bulletin, 2013, 33 (1), 434-441

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https://docs.iza.org/dp7220.pdf (application/pdf)

Related works:
Journal Article: Minimum wages and the creation of illegal migration (2013)
Working Paper: Minimum Wages and the Creation of Illegal Migration (2013)
Working Paper: Minimum wages and the creation of illegal migration (2013)
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