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The effect of minimum wages on immigrants' employment and earnings

  • Orrenius, Pia M.

    ()

    (Federal Reserve Bank of Dallas)

  • Zavodny, Madeline

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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File URL: http://dallasfed.org/assets/documents/research/papers/2008/wp0805.pdf
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Paper provided by Federal Reserve Bank of Dallas in its series Working Papers with number 0805.

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Length: 40 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:fip:feddwp:0805
Note: Published as: Orrenius, Pia M. and Madeline Zavodny (2008), "The Effect of Minimum Wages on Immigrants' Employment and Earnings," Industrial and Labor Relations Review 61 (4): 544-563.
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  20. 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.
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  28. David Neumark & William Wascher, 1993. "Employment Effects of Minimum and Subminimum Wages: Reply to Card, Katz and Krueger," NBER Working Papers 4570, National Bureau of Economic Research, Inc.
  29. 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).
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