Industrial Relations
Volume 58, Issue 2, 2019, Pages 275-314
The Effects of Minimum Wages on Low-Skilled Immigrants’ Wages, Employment, and Poverty (Article)
Churchill B.F.* ,
Sabia J.J.
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a
[Affiliation not available]
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b
[Affiliation not available]
Abstract
Raising the minimum wage has been advanced as complementary policy to comprehensive immigration reform to improve low-skilled immigrants’ economic well-being. While adverse labor demand effects could undermine this goal, existing studies do not detect evidence of negative employment effects. We re-investigate this question using data from the 1994 to 2016 Current Population Survey and conclude that minimum wage increases reduced employment of less-educated Hispanic immigrants, with estimated elasticities of around –0.1. However, we also find that the wage and employment effects of minimum wages on low-skilled immigrants diminished over the last decade. This finding is consistent with more restrictive state immigration policies and the Great Recession inducing outmigration of low-skilled immigrants, as well as immigrants moving into the informal sector. Finally, our results show that raising the minimum wage is an ineffective policy tool for reducing poverty among immigrants. © 2019 The Regents of the University of California
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Link
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85063133284&doi=10.1111%2firel.12232&partnerID=40&md5=c0d1fb91ac33e1178ecca7d202fdb050
DOI: 10.1111/irel.12232
ISSN: 00198676
Original Language: English