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Wage Effects on Immigrants from an Increase in the Minimum Wage Rate: An Analysis by Immigrant Industry Concentration

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Author Info

  • Cortes, Kalena E.

    ()
    (Texas A&M University)

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    Abstract

    Using the monthly samples of the Current Population Survey (CPS) outgoing rotation group files, this paper analyzes the most recent increase in the U.S. minimum wage rate. This study focuses on immigrant and native-born workers who are employed in industries with low and high immigrant concentrations, and investigates whether there is any relationship between industry non-compliance and the concentration of immigrant workers. This study finds that resultant wage increases were equal for both immigrants and natives. Also, the analysis shows no existing evidence of non-compliance towards immigrant workers; but rather that female immigrants in immigrant-intensive industries (the worst off in the sample) are the workers with the highest compliance towards them.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1064.

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    Length: 31 pages
    Date of creation: Mar 2004
    Date of revision:
    Handle: RePEc:iza:izadps:dp1064

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    Related research

    Keywords: minimum wage; immigrant workers; immigrant-intensive industries; minimum wage compliance;

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    References

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    1. David Card & Alan Krueger, 1993. "Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania," Working Papers 694, Princeton University, Department of Economics, Industrial Relations Section..
    2. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
    3. Orley Ashenfelter & Robert Smith, 1977. "Compliance with the Minimum Wage Law," Working Papers 478, Princeton University, Department of Economics, Industrial Relations Section..
    4. David Neumark & William Wascher, 1992. "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
    5. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
    6. repec:fth:calaec:27-98 is not listed on IDEAS
    7. Janet Currie & Bruce C. Fallick, 1996. "The Minimum Wage and the Employment of Youth Evidence from the NLSY," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 404-428.
    8. Lawrence Katz & Alan Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Working Papers 678, Princeton University, Department of Economics, Industrial Relations Section..
    9. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    10. George J. Borjas, 1988. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
    11. Burkhauser, Richard V & Couch, Kenneth A & Wittenburg, David C, 2000. "A Reassessment of the New Economics of the Minimum Wage Literature with Monthly Data from the Current Population Survey," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 653-80, October.
    12. Gary Solon, 1985. "The Minimum Wage and Teenage Employment: A Reanalysis with Attention to Serial Correlation and Seasonality," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 292-297.
    13. repec:fth:prinin:298 is not listed on IDEAS
    14. Alison J. Wellington, 1991. "Effects of the Minimum Wage on the Employment Status of Youths: An Update," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 27-46.
    15. Richard V. Burkhauser & Kenneth A. Couch & David C. Wittenburg, 2000. "Who Minimum Wage Increases Bite: An Analysis Using Monthly Data from the SIPP and the CPS," Southern Economic Journal, Southern Economic Association, vol. 67(1), pages 16-40, July.
    16. Anne E. Polivka, 1996. "Data Watch: The Redesigned Current Population Survey," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 169-180, Summer.
    17. repec:fth:prinin:300 is not listed on IDEAS
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    Cited by:
    1. Dinkelman, Taryn & Ranchhod, Vimal, 2011. "Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa," CEPR Discussion Papers 8682, C.E.P.R. Discussion Papers.
    2. Orrenius, Pia M. & Zavodny, Madeline, 2008. "The Effect of Minimum Wages on Immigrants’ Employment and Earnings," IZA Discussion Papers 3499, Institute for the Study of Labor (IZA).
    3. Eckstein, Zvi & Ge, Suqin & Petrongolo, Barbara, 2006. "Job and Wage Mobility in a Search Model with Non-Compliance (Exemptions) with the Minimum Wage," IZA Discussion Papers 2076, Institute for the Study of Labor (IZA).

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