Minimum wages and the creation of illegal migration

Gil S. Epstein and Odelia Heizler

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. -- illegal immigration ; foreign worker ; minimum wages

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Year of publication:	2013
Authors:	Epstein, Gil S. ; Heizler, Odelia
Publisher:	[Ramat-Gan : Bar-Ilan Univ., Dep. of Economics]
Subject:	Arbeitsmigranten \| Migrant workers \| Arbeitsnachfrage \| Labor demand \| Schwarzarbeit \| Moonlighting \| Lohnstruktur \| Wage structure \| Migranten \| Migrants \| Mindestlohn \| Minimum wage \| Rechtsdurchsetzung \| Law enforcement \| Theorie \| Theory