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Gil S. Epstein and Odelia Heizler (Cohen)
''Minimum wages and the creation of illegal migration''
( 2013, Vol. 33 No.1 )
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: J3 - Wages, Compensation, and Labor Costs: General
K4 - Legal Procedure, the Legal System, and Illegal Behavior: General
Manuscript Received : Dec 06 2012 Manuscript Accepted : Feb 21 2013

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