Minimum Wages and the Creation of Illegal Migration

12 Pages Posted: 23 Feb 2013

See all articles by Gil S. Epstein

Gil S. Epstein

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; University College London - CReAM - Centre for Research and Analysis of Migration

Odelia Heizler-Cohen

Hebrew University of Jerusalem; IZA Institute of Labor Economics

Abstract

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.

Keywords: illegal immigration, foreign worker, minimum wages

JEL Classification: J3, K42

Suggested Citation

Epstein, Gil S. and Heizler-Cohen, Odelia, Minimum Wages and the Creation of Illegal Migration. IZA Discussion Paper No. 7220. Available at SSRN: https://ssrn.com/abstract=2223147

Gil S. Epstein (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
+972 3 531 8937 (Phone)
+972 3 535 3180 (Fax)

HOME PAGE: http://faculty.biu.ac.il/~epsteig/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

Odelia Heizler-Cohen

Hebrew University of Jerusalem ( email )

Mount Scopus
Jerusalem, IL Jerusalem 91905
Israel

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
22
Abstract Views
300
PlumX Metrics