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Author: Xuetao Huang Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation is a coherent combination of three related essays on the labor market outcome effects of the minimum wage on employment and wages, with an emphasis on low-educated low-wage immigrants. This dissertation is organized as follows. Chapter 1 presents some background of this study. This includes a discussion of coverage of minimum wage policies, both legally and theoretically, and a discussion about mechanisms of immigrants' effects on native workers. These background discussions act as the starting point of market structure of the theoretical models and the connecting part between the theoretical models on immigrants and the empirical work on immigrants and native workers. Chapter 1 also outlines the organization of this dissertation. The first essay is a theoretical model. I build into the model employers' maximization problem of choosing different types of immigrants to maximize profit, facing the tradeoff between the possibility to be caught when hiring unauthorized immigrants and the lower wages to pay for them under the table. Immigrants choose between different locations to maximize their expected wages. The prediction of the model is that the employment of permanent workers who earn a wage below the minimum wage (as in the uncovered sector) would increase first but decrease then with a turning point at around $10/hour. It also predicts that the employment of unauthorized workers in the uncovered sector has a reverse trend, so too high the minimum wage level would pressure employers to hire more unauthorized workers and force the employment of permanent workers to lower down. The second essay is another theoretical piece with alternative model setups. I assume unauthorized workers can also work in the covered sector and I call sectors with unauthorized workers unlawful sectors. There are two of them: unlawful covered sector and unlawful uncovered sector. Again, employers choose which sector they want to be in and how many different immigrants to hire in order to maximize their profits. In addition to that, permanent workers move between sectors in the destination country and unauthorized workers move between destination and originating countries to equalize their expected wages at equilibrium. The model predicts that permanent workers in the unlawful covered and uncovered sectors are two increasing curves of minimum wage and that unauthorized workers in the unlawful sectors are two decreasing curves of minimum wage. It seems that employers in the uncovered sector would prefer to hire permanent workers if both types of immigrants are available in that sector. The third essay is an empirical test for the two previous theoretical models. By using a longitudinal national survey data at person level, we identify the permanent and unauthorized immigrants mainly by their status of permanent residency: we use non-permanent residents to approximate unauthorized immigrants. I used two-way clustering models and two-way clustering Logit models with quadratic terms as the econometric methods. Furthermore, I tested several robustness checks by using different subsets of the longitudinal data. The overall results show that the first theoretical model works better in predicting the curvature of the employment and hourly wages related with minimum wage. These three essays fill the gap of nonlinear effects of the minimum wage on labor market performance in the context of immigrants.
Author: Xuetao Huang Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation is a coherent combination of three related essays on the labor market outcome effects of the minimum wage on employment and wages, with an emphasis on low-educated low-wage immigrants. This dissertation is organized as follows. Chapter 1 presents some background of this study. This includes a discussion of coverage of minimum wage policies, both legally and theoretically, and a discussion about mechanisms of immigrants' effects on native workers. These background discussions act as the starting point of market structure of the theoretical models and the connecting part between the theoretical models on immigrants and the empirical work on immigrants and native workers. Chapter 1 also outlines the organization of this dissertation. The first essay is a theoretical model. I build into the model employers' maximization problem of choosing different types of immigrants to maximize profit, facing the tradeoff between the possibility to be caught when hiring unauthorized immigrants and the lower wages to pay for them under the table. Immigrants choose between different locations to maximize their expected wages. The prediction of the model is that the employment of permanent workers who earn a wage below the minimum wage (as in the uncovered sector) would increase first but decrease then with a turning point at around $10/hour. It also predicts that the employment of unauthorized workers in the uncovered sector has a reverse trend, so too high the minimum wage level would pressure employers to hire more unauthorized workers and force the employment of permanent workers to lower down. The second essay is another theoretical piece with alternative model setups. I assume unauthorized workers can also work in the covered sector and I call sectors with unauthorized workers unlawful sectors. There are two of them: unlawful covered sector and unlawful uncovered sector. Again, employers choose which sector they want to be in and how many different immigrants to hire in order to maximize their profits. In addition to that, permanent workers move between sectors in the destination country and unauthorized workers move between destination and originating countries to equalize their expected wages at equilibrium. The model predicts that permanent workers in the unlawful covered and uncovered sectors are two increasing curves of minimum wage and that unauthorized workers in the unlawful sectors are two decreasing curves of minimum wage. It seems that employers in the uncovered sector would prefer to hire permanent workers if both types of immigrants are available in that sector. The third essay is an empirical test for the two previous theoretical models. By using a longitudinal national survey data at person level, we identify the permanent and unauthorized immigrants mainly by their status of permanent residency: we use non-permanent residents to approximate unauthorized immigrants. I used two-way clustering models and two-way clustering Logit models with quadratic terms as the econometric methods. Furthermore, I tested several robustness checks by using different subsets of the longitudinal data. The overall results show that the first theoretical model works better in predicting the curvature of the employment and hourly wages related with minimum wage. These three essays fill the gap of nonlinear effects of the minimum wage on labor market performance in the context of immigrants.
Author: Ana Beatriz Ract Pousada Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation has three chapters. The first chapter provides causal evidence on the effect of implementing or increasing a wage floor (an occupation-specific minimum wage) on the wage difference between outsourced, insourced, and informal workers, the employment of outsourced and insourced workers, and the size of the informal labor market. To do so, I use matched employer-employee data from Brazil, focusing on the labor market for cleaning workers. Brazil has regional occupation-specific wage floors that increased in response to yearly federal minimum wage increases starting in 2000. I use this institutional context to implement a simulated instrument that predicts the regional wage floors based only on the federal minimum wage increase and the wage floor in 1999. Estimation results show that a wage floor increase decreases the outsourced wage penalty, which makes outsourced workers relatively more expensive than insourced workers, thus reducing outsourcing employment. Finally, I find no significant effect on informal worker employment and a reduction in the informal wage penalty. The second chapter characterizes the contribution of immigrants to US innovation. Leveraging new data, we use the age of SSN assignment to identify immigrant status. Immigrants represent 16 percent of inventors but authored 23 percent of patents. Immigrant inventors contribute to knowledge diffusion across borders. They disproportionately rely on foreign technologies and inventor collaborations, and are cited more abroad. Using variation from premature inventor deaths, we find immigrant inventors create stronger innovation productivity spillovers on their collaborators than US-born inventors. A simple model implies immigrants are responsible for 36 percent of aggregate innovation, two-thirds due to innovation externalities on US-born collaborators. Finally, the third chapter estimates if the large influx of immigrants to Brazil between 1870 and 1920 contributed to the decline in women's participation in manufacturing employment during the same period. To do so, I assemble a novel country-wide data set that covers employment by gender and industry for the end of the 19th century and the beginning of the 20th century in Brazil. I used a shift-share instrument similar to Card (2001) to estimate the causal effect. It predicts the influx of immigrants by assuming that immigrants of a specific nationality are more likely to settle in states with a large population from their home country. My results indicate that, counter-intuitively, the increase in immigration actually slowed down the decline in women's labor force participation in manufacturing.
Author: Christopher L. Smith Publisher: DIANE Publishing ISBN: 1437930964 Category : Social Science Languages : en Pages : 43
Book Description
This is a print on demand edition of a hard to find publication. The employment-to-population rate of high-school aged youth has fallen by about 20 percentage points since the late 1980s. Growth in the number of less-educated immigrants reduced youth employment rates. Previous research had identified a modest negative relationship between immigration levels and adult labor market outcomes. Two factors are at work: there is greater overlap between the jobs that youth and less-educated adult immigrants do, and youth labor supply is more responsive to immigration-induced changes in their wage. Reduced employ. rates are not associated with higher earnings 10 years later in life. There is a possibility that an immigration-induced reduction in youth employment hinders youths' human capital accumulation.
Author: George J. Borjas Publisher: ISBN: Category : Emigration and immigration Languages : en Pages : 26
Book Description
We compare two approaches to analyzing the effects of immigration on the labor market and find that the estimated effect of immigration on U.S. native labor outcomes depends critically on the empirical experiment used. Area analyses contrast the level or change in immigration by area with the level or change in the outcomes of non- immigrant workers. Factor proportions analyses treat immigrants as a source of increased national supply of workers of the relevant skill. Cross-section comparisons of wages and immigration in the 1980 and 1990 Censuses yield unstable results casting doubt on the validity of these calculations. Analyses of changes over time for various education groups within regions give negative estimated immigration effects, which increase in magnitude the wider the area covered. Factor proportions calculations show that immigration was somewhat important in reducing the relative pay of U.S. high school dropouts during the 1980s, while immigration and trade contributed much more modestly to the falling pay of high school equivalent workers. The different effects of immigration on native outcomes in the area and factor proportions methodologies appear to result from the diluting effect of native migration flows across regions and failure to take adequate account of other regional labor market conditions in area comparisons.
Author: Doruk Cengiz Publisher: ISBN: Category : Languages : en Pages :
Book Description
This dissertation empirically examines effects of the minimum wage, immigration, and privatization; three of the most crucial policies that impact workers worldwide using recent advances in statistics and econometrics to provide causally interpretable results, and to reconcile controversies in the literature. In the first chapter, titled "Seeing Beyond the Trees: Using machine learning to estimate the impact of minimum wages on affected individuals", I identify minimum wage workers prior to estimating its effects using machine learning tools, and provide highly representative demographically-based groups that capture as much as 73.4% of all likely minimum wage workers. I find that there is a very clear increase in average wages of workers in these groups following a minimum wage increase, validating my approach to constructing these groups. I find scant evidence of employment loss or a decline in fringe benefits in response to the policy change. I show that the results are robust for a variety of methods to construct the counterfactuals including a data-driven interactive fixed effects model. Importantly, when I consider specifications that indicate a disemployment effect for teens similar to some of the literature, I find no adverse employment effect on affected non-teens, - suggesting that the current controversy is largely limited to teens, a small and a shrinking share of the minimum wage workers. Finally, I propose a falsification test that reveals whether an estimated minimum wage effect is confounded by shocks to unaffected individuals which further reconciles conflicting evidence in the literature. In the second chapter, titled "Is It Merely A Labor Supply Shock? Impacts of Syrian Migrants on Local Economies in Turkey" co-authored with Hasan Tekg\"u\c{c}, we use a large and geographically varying inflow of over 2.5 million Syrian migrants in Turkey between 2012 and 2015 to study the effect of migration on local economies. We do not find adverse employment or wage effects for native-born Turkish workers overall, or those without a high school degree. These results are robust to a range of strategies to construct reliable control groups. On the other hand, we find evidence for a number of channels indicating demand side effects of migration that help offset the impact of a labor supply shock. Turkish workers' participation in the formal sector rose in response to the migration, consistent with complementarity of migrants and native born workers. In addition, migration led to an increase in residential building construction, with the number of new dwelling units increasing by more than 33%. Finally, we show that Syrian migration brought in capital and entrepreneurs to the host regions, spurring new business creation: the migration led to a more than 24% increase in new companies, reflecting an increase in both Syrian-founded and non-Syrian founded companies. Our findings suggest that migration-induced increases in regional demand and capital supply enable local labor markets to absorb inflow of migrant labor, and prevent sizable wage decline or job loss for native workers. In the third chapter, titled "When Does Privatization Process Begin? Total Effects of Privatization in Turkey", I examine effects of privatization process as a whole in Turkey. I find that the privatization has resulted in a 65% decline in firm-level workforce, an 18 percentage point increase in the profit-margin, and statistically no change in real sales. In addition, I show that the privatization is a process that starts before the date of sale of the firm. Therefore, overlooking the downsizing of the firm before the sale severely biases the results, which appears to be the underlying cause behind conflicting findings in the literature. I conclude that privatization results in an income transfer from wage-earners to profit-earners.
Author: Brandyn Churchill Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
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.
Author: United States. Congress. House. Committee on the Judiciary. Subcommittee on Immigration, Citizenship, Refugees, Border Security, and International Law Publisher: ISBN: Category : Business & Economics Languages : en Pages : 230
Author: Xuetao Huang
Author: Xuetao Huang
Author: 
Author: Ana Beatriz Ract Pousada
Author: Christopher L. Smith
Author: United States. Minimum Wage Study Commission
Author: George J. Borjas
Author: Doruk Cengiz
Author: Brandyn Churchill
Author: United States. Congress. House. Committee on the Judiciary. Subcommittee on Immigration, Citizenship, Refugees, Border Security, and International Law
Author: John M. Peterson