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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- 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.
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- Faini,Riccardo C. & de Melo,Jaime & Zimmermann,Klaus (ed.), 1999. "Migration," Cambridge Books, Cambridge University Press, number 9780521662338, 1.
- 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.
- Epstein, Gil S. & Heizler (Cohen), Odelia, 2007.
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2830, Institute for the Study of Labor (IZA).
- Avi Weiss & Arye L. Hillman & Gil S. Epstein, 1999.
"Creating illegal immigrants,"
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Springer, vol. 12(1), pages 3-21.
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