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The incidence of subminimum pay among native and immigrant workers
Authors:Fry  Richard  Lowell  B Lindsay
Institution:(1) Division of Immigration Policy & Research, US Department of Labor, USA
Abstract:This paper econometrically compares the subminimum wage propensities of immigrants and US natives using 1989 microdata. A conventional expectation is that immigrants are more likely to earn subminimum wages because of their lesser education and knowledge of labor rights. However, immigrants also tend to participate full time in the labor market and field studies suggest they provide employers an 'experienced' labor pool. Indeed, our findings indicate that immigrants by age, sex, and race/ethnic group are less likely than natives to receive subminimum wages. These findings imply that the foreign born do not contribute disproportionately to the informal economy.
Keywords:Fair Labor Standards Act (FLSA)  Immigrants  Labor market standards  Low wages  Minimum wages
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