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|
|Publication status:||published in: Economics Bulletin, 2013, 33 (1), 434-441|
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References listed on IDEAS
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- 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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- Epstein, Gil S., 2000. "Labor Market Interactions Between Legal and Illegal Immigrants," IZA Discussion Papers 204, Institute for the Study of Labor (IZA).
- 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.
- 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.
- 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.
- Epstein, Gil S & Hillman, Arye L. & Weiss, Avi, 1998.
"Creating Illegal Immigrants,"
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1796, C.E.P.R. Discussion Papers.
- Faini,Riccardo C. & de Melo,Jaime & Zimmermann,Klaus (ed.), 1999. "Migration," Cambridge Books, Cambridge University Press, number 9780521662338, December.
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