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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. () (Princeton University and IZA Bonn)
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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Publisher 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;

Other versions of this item:

Find related papers by JEL classification:
J00 - Labor and Demographic Economics - - General - - - General
J10 - Labor and Demographic Economics - - Demographic Economics - - - General
J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. repec:fth:prinin:300 is not listed on IDEAS
  3. 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, ILR School, Cornell University, vol. 46(1), pages 55-81, October.
  4. 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. [Downloadable!] (restricted)
  5. 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.. [Downloadable!]
    Other versions:
  6. 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.. [Downloadable!]
    Other versions:
  7. 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.
  8. 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. [Downloadable!] (restricted)
  9. repec:fth:prinin:298 is not listed on IDEAS
  10. Stephen J. Trejo, . "Immigrant Participation in Low-Wage Labor Market," University of California at Santa Barbara, Economics Working Paper Series 27-98, Department of Economics, UC Santa Barbara.
  11. Ashenfelter, Orley & Smith, Robert S, 1979. "Compliance with the Minimum Wage Law," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 333-50, April. [Downloadable!] (restricted)
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  12. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September. [Downloadable!] (restricted)
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  13. Polivka, Anne E, 1996. "Data Watch: The Redesigned Current Population Survey," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 169-80, Summer. [Downloadable!] (restricted)
  14. 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 772-93, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pia M. Orrenius & Madeline Zavodny, 2007. "The minimum wage and Latino workers," Working Papers 0708, Federal Reserve Bank of Dallas. [Downloadable!]
  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). [Downloadable!]
    Other versions:
  3. Zvi Eckstein & Suqin Ge & Barbara Petrongolo, 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). [Downloadable!]
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