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The Effect of Minimum Wages on Immigrants’ Employment and Earnings

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Author Info
Orrenius, Pia M. () (Federal Reserve Bank of Dallas)
Zavodny, Madeline () (Agnes Scott College)

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Abstract

This study examines how minimum wage laws affect the employment and earnings of low-skilled immigrants and natives in the U.S. Minimum wage increases might have larger effects among low-skilled immigrants than among natives because, on average, immigrants earn less than natives due to lower levels of education, limited English skills, and less social capital. Results based on data from the Current Population Survey for the years 1994-2005 do not indicate that minimum wages have adverse employment effects among adult immigrants or natives who did not complete high school. However, low-skilled immigrants may have been discouraged from settling in states that set wage floors substantially above the federal minimum.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3499.

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Length: 2008 pages
Date of creation: May 2008
Date of revision:
Publication status: Published in: Industrial and labor Relations Review, 2008, 61 (4), 544 - 563
Handle: RePEc:iza:izadps:dp3499

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Related research
Keywords: minimum wage; low-skilled; immigrants;

Other versions of this item:

Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination

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References listed on IDEAS
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  2. Pia M. Orrenius & Genevieve R. Solomon, 2006. "How labor market policies shape immigrants’ opportunities," Economic Letter, Federal Reserve Bank of Dallas, issue Jul. [Downloadable!]
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    Other versions:
  5. repec:fth:prinin:300 is not listed on IDEAS
  6. 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.
  7. Manfred W. Keil & Donald Robertson & James Symons, 2001. "Minimum Wages and Employment," Claremont Colleges Working Papers 2001-08, Claremont Colleges. [Downloadable!]
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    Other versions:
  9. David Neumark & William Wascher, 2007. "Does a Higher Minimum Wage Enhance the Effectiveness of The Earned Income Tax Credit?," NBER Working Papers 12915, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    Other versions:
  12. Gianmarco I.P. Ottaviano & Giovanni Peri, 2005. "Rethinking the Gains from Immigration: Theory and Evidence from the U.S," NBER Working Papers 11672, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Lang, Kevin & Kahn, Shulamit, 1998. "The effect of minimum-wage laws on the distribution of employment: theory and evidence," Journal of Public Economics, Elsevier, vol. 69(1), pages 67-82, July. [Downloadable!] (restricted)
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    Other versions:
  15. Barry R. Chiswick & Anh T. Le & Paul W. Miller, 2006. "How Immigrants Fare Across the Earnings Distribution: International Analyses," IZA Discussion Papers 2405, Institute for the Study of Labor (IZA). [Downloadable!]
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  19. Cortes, Kalena E., 2004. "Wage Effects on Immigrants from an Increase in the Minimum Wage Rate: An Analysis by Immigrant Industry Concentration," IZA Discussion Papers 1064, Institute for the Study of Labor (IZA). [Downloadable!]
  20. David Neumark & William Wascher, 2007. "Minimum Wages, the Earned Income Tax Credit, and Employment: Evidence from the Post-Welfare Reform Era," IZA Discussion Papers 2610, Institute for the Study of Labor (IZA). [Downloadable!]
  21. Baker, Michael & Benjamin, Dwayne & Stanger, Shuchita, 1999. "The Highs and Lows of the Minimum Wage Effect: A Time-Series Cross-Section Study of the Canadian Law," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 318-50, April. [Downloadable!] (restricted)
  22. 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)
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