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Wage Effects on Immigrants from an Increase in the Minimum Wage Rate: An Analysis by Immigrant Industry Concentration

Author

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  • Cortes, Kalena E.

    (Texas A&M University)

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.

Suggested Citation

  • 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 of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1064
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    References listed on IDEAS

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    14. 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, John Wiley & Sons, vol. 67(1), pages 16-40, July.
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    Cited by:

    1. Pia M. Orrenius & Madeline Zavodny, 2008. "The Effect of Minimum Wages on Immigrants' Employment and Earnings," ILR Review, Cornell University, ILR School, vol. 61(4), pages 544-563, July.
    2. Eckstein, Zvi & Ge, Suqin & Petrongolo, Barbara, 2006. "Job and Wage Mobility in a Search Model with Non-Compliance (Exemptions) with the Minimum Wage," IZA Discussion Papers 2076, Institute of Labor Economics (IZA).
    3. Corrado Giulietti, 2015. "Do minimum wages induce immigration?," IZA World of Labor, Institute of Labor Economics (IZA), pages 151-151, May.
    4. Dinkelman, Taryn & Ranchhod, Vimal, 2012. "Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa," Journal of Development Economics, Elsevier, vol. 99(1), pages 27-45.
    5. Madeline Zavodny, 2014. "Who benefits from the minimum wage--natives or migrants?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-98, December.
    6. Burauel Patrick & Caliendo Marco & Grabka Markus M. & Obst Cosima & Preuss Malte & Schröder Carsten & Shupe Cortnie, 2020. "The Impact of the German Minimum Wage on Individual Wages and Monthly Earnings," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 201-231, April.

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    More about this item

    Keywords

    minimum wage; immigrant workers; immigrant-intensive industries; minimum wage compliance;
    All these keywords.

    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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