Minimum Wage and Labor Mobility: An Empirical Study on Labor in California
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This paper investigates the causality between minimum wages and migration in California. With California county-level data, we estimate the impact of minimum wages on the flow of migration through the expected wage channel. Our empirical results suggest that first, Asian immigrants are not sensitive to the change of minimum wages. Second, compared to Asian immigrants, Hispanic immigrants respond to minimum wages more positively. Particularly, low-income Hispanic immigrants respond most to the change of minimum wages. These results indicate that higher minimum wages may create distortions in the labor market for unskilled workers.
Abstract
This paper investigates the causality between minimum wages and migration in California. With California county-level data, we estimate the impact of minimum wages on the flow of migration through the expected wage channel. Our empirical results suggest that first, Asian immigrants are not sensitive to the change of minimum wages. Second, compared to Asian immigrants, Hispanic immigrants respond to minimum wages more positively. Particularly, low-income Hispanic immigrants respond most to the change of minimum wages. These results indicate that higher minimum wages may create distortions in the labor market for unskilled workers.
참고문헌 (19)
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