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The economic effects of illegal migration under the minimum wage policy of a source country

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  • Shuqin Sun
  • Makoto Tawada

Abstract

. This research note extends Bond and Chen's analysis of illegal migration by assuming that the source country is a developing country in which there is a minimum wage policy. We examine how the minimum wage of the source country and enforcement by the host affect factor prices, migration, unemployment and economic welfare. We find that the enforcement effect is clear and intuitive, but the qualitative effect of the minimum wage depends on the wage elasticity of employment in the source country. Abstract. Este artículo examina las causas de perturbaciones en las variaciones a corto y largo plazo en el output de las regiones en Francia. Utilizamos un modelo de componente de errores que descompone movimientos de output descentralizados en efectos comunes nacionales, específicos por industria, específicos por regiones, e idiosincrásicos. Encontramos que las perturbaciones específicas por industria explican la mayor parte de la varianza del componente sistemático de fluctuaciones de output descentralizadas. Más aun, las estrategias de políticas regionales descentralizadas que no se dirigen a sectores específicos en la región solo tienen un impacto muy limitado en las variaciones a corto y largo plazo en outputs sectoriales.

Suggested Citation

  • Shuqin Sun & Makoto Tawada, 2007. "The economic effects of illegal migration under the minimum wage policy of a source country," Papers in Regional Science, Wiley Blackwell, vol. 86(2), pages 321-331, June.
    • Handle: RePEc:bla:presci:v:86:y:2007:i:2:p:321-331
    DOI: 10.1111/j.1435-5957.2007.00108.x
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    Cited by:

    1. Wang Yulian & Zhu Hongfei, 2014. "The Role of Risk Preference in Immigration and Minimum Wage Policies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1709-1724, October.

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