Minimum Wages and the Creation of Illegal Migration
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.
|Date of creation:||Feb 2013|
|Date of revision:|
|Publication status:||published in: Economics Bulletin, 2013, 33 (1), 434-441|
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Avi Weiss & Arye L. Hillman & Gil S. Epstein, 1999.
"Creating illegal immigrants,"
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- 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.
- Faini,Riccardo C. & de Melo,Jaime & Zimmermann,Klaus (ed.), 1999. "Migration," Cambridge Books, Cambridge University Press, number 9780521662338, November.
- Paul Levine, 1999. "The welfare economics of immigration control," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 23-43.
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