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The effect of minimum wages on immigrants' employment and earnings

Author

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  • Orrenius, Pia M.

    () (Federal Reserve Bank of Dallas)

  • Zavodny, Madeline

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.

Suggested Citation

  • Orrenius, Pia M. & Zavodny, Madeline, 2008. "The effect of minimum wages on immigrants' employment and earnings," Working Papers 0805, Federal Reserve Bank of Dallas.
  • 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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sen, Anindya & Rybczynski, Kathleen & Van De Waal, Corey, 2011. "Teen employment, poverty, and the minimum wage: Evidence from Canada," Labour Economics, Elsevier, vol. 18(1), pages 36-47, January.
    2. Corrado Giulietti, 2015. "Do minimum wages induce immigration?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 151-151, May.
    3. Jonathan Meer & Jeremy West, 2016. "Effects of the Minimum Wage on Employment Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 500-522.
    4. Ernest Dautovic & Harald Hau & Yi Huang, 2017. "The Consumption Response to Minimum Wages: Evidence from Chinese Households," IHEID Working Papers 01-2017, Economics Section, The Graduate Institute of International Studies.
    5. Cadena, Brian C., 2014. "Recent immigrants as labor market arbitrageurs: Evidence from the minimum wage," Journal of Urban Economics, Elsevier, vol. 80(C), pages 1-12.
    6. Kahanec, Martin, 2012. "Report No. 49: Skilled Labor Flows: Lessons from the European Union," IZA Research Reports 49, Institute for the Study of Labor (IZA).
    7. Lundborg , Per & Skedinger, Per, 2014. "Minimum Wages and the Integration of Refugee Immigr ants," Working Paper Series 4/14, Stockholm University, Swedish Institute for Social Research.
    8. Orrenius, Pia M. & Zavodny, Madeline, 2007. "The minimum wage and Latino workers," Working Papers 0708, Federal Reserve Bank of Dallas.
    9. Michael R. Strain & Peter Brummund, 2016. "Real and permanent minimum wages," AEI Economics Working Papers 875967, American Enterprise Institute.
    10. Anita Alves Pena, 2013. "Do Minimum Wage Laws Affect People Who Are Not Covered? Evidence from Documented and Undocumented, Hourly and Piece Rate Workers in U.S. Agriculture," Upjohn Working Papers and Journal Articles 13-194, W.E. Upjohn Institute for Employment Research.
    11. Eva Lajtkepová, 2010. "Minimum Wage and Labour Market," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2010(1), pages 3-20.
    12. repec:bla:coecpo:v:36:y:2018:i:1:p:116-135 is not listed on IDEAS
    13. repec:eee:regeco:v:64:y:2017:i:c:p:137-147 is not listed on IDEAS

    More about this item

    Keywords

    Immigrants; Minimum wage; Human capital; Education; Wages; Employment;

    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, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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