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Minimum Wages and the Creation of Illegal Migration

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Author Info

  • Epstein, Gil S.

    ()
    (Bar-Ilan University)

  • Heizler (Cohen), Odelia

    ()
    (Academic College of Tel-Aviv Yaffo)

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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7220.

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Length: 12 pages
Date of creation: Feb 2013
Date of revision:
Publication status: published in: Economics Bulletin, 2013, 33 (1), 434-441
Handle: RePEc:iza:izadps:dp7220

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Keywords: foreign worker; illegal immigration; minimum wages;

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References

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  1. Gil S. Epstein, 2003. "Labor Market Interactions Between Legal and Illegal Immigrants," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 30-43, February.
  2. Paul Levine, 1999. "The welfare economics of immigration control," Journal of Population Economics, Springer, vol. 12(1), pages 23-43.
  3. Avi Weiss & Arye L. Hillman & Gil S. Epstein, 1999. "Creating illegal immigrants," Journal of Population Economics, Springer, vol. 12(1), pages 3-21.
  4. Faria, Joao Ricardo & Levy, Amnon, 2003. "Illegal Immigration and Migrant Networks: Is There an Optimal Immigration Quota Policy?," Economics Working Papers wp03-08, School of Economics, University of Wollongong, NSW, Australia.
  5. Gil S. Epstein & Odelia Heizler, 2007. "Illegal Migration, Enforcement and Minimum Wage," CReAM Discussion Paper Series 0708, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Devillanova, Carlo, 2008. "Social networks, information and health care utilization: Evidence from undocumented immigrants in Milan," Journal of Health Economics, Elsevier, vol. 27(2), pages 265-286, March.
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