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.

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Year of publication:	2013
Authors:	Epstein, Gil S. ; Heizler, Odelia
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 33.2013, 1, p. 434-441
Publisher:	AccessEcon
Subject:	illegal immigration \| foreign worker \| minimum wages

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Extent:	application/pdf
Type of publication:	Article
Classification:	J3 - Wages, Compensation, and Labor Costs ; K4 - Legal Procedure, the Legal System, and Illegal Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011278855