Recent immigrants as labor market arbitrageurs: Evidence from the minimum wage

A-Tier
Journal: Journal of Urban Economics
Year: 2014
Volume: 80
Issue: C
Pages: 1-12

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates the local labor supply effects of changes to the minimum wage by examining the response of low-skilled immigrants’ location decisions. Canonical models emphasize the importance of labor mobility when evaluating the employment effects of the minimum wage; yet few studies address this outcome directly. Low-skilled immigrant populations shift toward labor markets with stagnant minimum wages, and this result is robust to a number of alternative interpretations. This mobility provides behavior-based evidence in favor of a non-trivial negative employment effect of the minimum wage. Further, it reduces the estimated demand elasticity using teens; employment losses among native teens are substantially larger in states that have historically attracted few immigrant residents.

Technical Details

RePEc Handle
repec:eee:juecon:v:80:y:2014:i:c:p:1-12
Journal Field
Urban/Geographic
Author Count
1
Added to Database
2026-01-25