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Does a high minimum wage spur low-skilled emigration?

Author

Listed:
  • Martin, D.
  • Termos, A.

Abstract

We investigate the migration response to state and local variation in minimum wages in the United States. We find that a one dollar difference between two areas’ real minimum wage is associated with 3.1% more migration of low-skilled workers towards the location with the lower minimum wage. The minimum wage does not influence the migration decisions of high-skilled workers.

Suggested Citation

  • Martin, D. & Termos, A., 2015. "Does a high minimum wage spur low-skilled emigration?," Economics Letters, Elsevier, vol. 137(C), pages 200-202.
    • Handle: RePEc:eee:ecolet:v:137:y:2015:i:c:p:200-202
    DOI: 10.1016/j.econlet.2015.10.027
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    References listed on IDEAS

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    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    2. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, December.
    3. Reich, MIchael & Jacobs, Ken & Bernhardt, Annette, 2014. "Local Minimum Wage Laws: Impacts on Workers, Families and Businesses," Institute for Research on Labor and Employment, Working Paper Series qt9pf1225f, Institute of Industrial Relations, UC Berkeley.
    4. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    5. Arindrajit Dube & T. William Lester & Michael Reich, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 945-964, November.
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    More about this item

    Keywords

    Minimum wage; Migration; Fractional logit model;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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