Wage Effects on Immigrants from an Increase in the Minimum Wage Rate: An Analysis by Immigrant Industry Concentration

31 Pages Posted: 14 Apr 2004

See all articles by Kalena E. Cortes

Kalena E. Cortes

Texas A&M University - George Bush School of Government and Public Service; IZA Institute of Labor Economics

Date Written: March 2004

Abstract

Using the monthly samples of the Current Population Survey (CPS) outgoing rotation group files, this paper analyzes the most recent increase in the U.S. minimum wage rate. This study focuses on immigrant and native-born workers who are employed in industries with low and high immigrant concentrations, and investigates whether there is any relationship between industry non-compliance and the concentration of immigrant workers. This study finds that resultant wage increases were equal for both immigrants and natives. Also, the analysis shows no existing evidence of non-compliance towards immigrant workers; but rather that female immigrants in immigrant-intensive industries (the worst off in the sample) are the workers with the highest compliance towards them.

Keywords: minimum wage, immigrant workers, immigrant-intensive industries, minimum wage compliance

JEL Classification: J00, J10, J82, J83

Suggested Citation

Cortes, Kalena E., Wage Effects on Immigrants from an Increase in the Minimum Wage Rate: An Analysis by Immigrant Industry Concentration (March 2004). Available at SSRN: https://ssrn.com/abstract=524606 or http://dx.doi.org/10.2139/ssrn.524606

Kalena E. Cortes (Contact Author)

Texas A&M University - George Bush School of Government and Public Service ( email )

TAMU 4220
1004 George Bush Dr West
College Station, TX 77843
United States

IZA Institute of Labor Economics

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

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