Arbeitspapier

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 7220

Classification
Wirtschaft
Illegal Behavior and the Enforcement of Law
Subject
illegal immigration
foreign worker
minimum wages

Event
Geistige Schöpfung
(who)
Epstein, Gil S.
Heizler, Odelia
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2013

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Epstein, Gil S.
  • Heizler, Odelia
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2013

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