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Research papers on The minimum wage and jobs

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  1. Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws

    David Neumark, William L. Wascher · 1992 · Industrial and Labor Relations Review · 656 citations

    Using panel data on state minimum wage laws and economic conditions for the years 1973–89, the authors reevaluate existing evidence on the effects of a minimum wage on employment. Their estimates indicate that a 10% increase in the minimum wage causes a decline of 1–2% in employment among teenagers and a decline of 1.5–2% in employment for young adults, similar to the ranges suggested by earlier time-series studies. The authors also find evidence that youth subminimum wage provisions enacted by state legislatures moderate the disemployment effects of minimum wages on teenagers.

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  2. Effects of the Minimum Wage on Employment Dynamics

    Jonathan Meer, Jeremy West · 2015 · The Journal of Human Resources · 443 citations

    The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment.We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels.We show that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects.Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years.This finding is supported using several empirical specifications.

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  3. Effects of the Minimum Wage on the Employment Status of Youths: An Update

    ALISON J. WELLINGTON · 1991 · The Journal of Human Resources · 141 citations

    The large decline in the relative value of the minimum wage during the 1980s makes that period a valuable one for identifying the impact of variation in the minimum wage on youth employment. This study produces the robust finding that, when the experience of the 1980s is included, a 10 percent increase in the minimum wage is estimated to reduce teen employment by less than 1 percent-the lower end of the range of previous estimates. Because this small employment effect is offset by a labor force withdrawal effect, the study finds no discernible effect on measured unemployment. The study also finds no apparent effect of the minimum wage on the employment of young adults aged 20-24.

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  4. The Employment Effects of the National Minimum Wage

    Mark B. Stewart · 2004 · The Economic Journal · 135 citations

    This paper estimates the employment effects of the introduction of the UK National Minimum Wage in April 1999 and subsequent upratings in 2000 and 2001. It uses a difference-in-differences estimator based on position in the wage distribution. For the upratings an adjusted estimator is also introduced to allow for the possible differential response to the change in the macro employment trend. No significant adverse employment effects are found for any of these events for any of the estimators for any demographic group.

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  5. The Effects of the Minimum Wage on the Employment and Earnings of Youth

    Robert H. Meyer, David A. Wise · 1983 · Journal of Labor Economics · 100 citations

    The employment and earnings effects of the minimum wage are estimated by parameterizing a hypothesized relationship between underlying market employment and wage relationships versus observed wage and employment distributions in the presence of a legislated minimum. If there had been no minimum during the 1973-78 period, we estimate that employment among out-of-school men 16-24 would have been approximately 4% higher than it was. Among young men 16-19 employment would have been about 7% higher; among those 20-24, 2% higher. Employment among black youth 16-24 would have been almost 6% higher than it was, compared with somewhat less than 4% for white youth. Although it is sometimes argued that

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  6. Minimum Wage Employment Effects and Labor Market Concentration

    José Azar, Emiliano Huet-Vaughn, Ioana Marinescu, et al. · 2019 · National Bureau of Economic Research · 85 citations

    Why is the employment effect of the minimum wage frequently found to be close to zero? Theory tells us that when wages are below marginal productivity, as with monopsony, employers are able to increase wages without laying off workers, but systematic evidence directly supporting this explanation is lacking. In this paper, we provide empirical support for the monopsony explanation by studying a key low-wage retail sector and using data on labor market concentration that covers the entirety of the United States with fine spatial variation at the occupation-level. We find that more concentrated labor markets - where wages are more likely to be below marginal productivity - experience significan

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  7. Minimum Wage Employment Effects and Labour Market Concentration

    José Azar, Emiliano Huet-Vaughn, Ioana Marinescu, et al. · 2023 · The Review of Economic Studies · 75 citations

    Abstract This paper shows that more highly concentrated labour markets experience more positive employment effects of the minimum wage. In the most concentrated labour markets, employment rises following a minimum wage increase. The paper establishes its main findings by studying the effects of local minimum wage increases on a key low-wage retail sector, and using data on labour market concentration that covers the entirety of the U.S. with fine spatial variation at the occupation level. The results carry over to the fast-food sector and the entire low-wage labour market and are robust to using proxies of labour market concentration available for a broader range of industries, such as the n

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  8. Minimum Wage Effects on Employment and School Enrollment

    David Neumark, William L. Wascher · 1995 · Journal of Business and Economic Statistics · 60 citations

    We argue in this article that the focus on employment effects in recent studies of minimum wages ignores an important interaction between schooling, employment, and the minimum wage. To study these linkages, we estimate a conditional logit model of employment and enrollment outcomes for teenagers using state–year observations for the period 1977 to 1989. The results show a negative influence of minimum wages on school enrollment and a positive effect on the proportion of teens neither employed nor in school. We further suggest that our results are consistent with substitution by employers of higher-for lower-skilled teenagers, with the displaced teens ending up both out of work and out of sc

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  9. Effects of the Minimum Wage on Employment Dynamics

    Jonathan Meer, Jeremy West · 2013 · National Bureau of Economic Research · 43 citations

    The voluminous literature on minimum wages offers little consensus on the extent to which a wage floor impacts employment.We argue that the minimum wage will impact employment over time, through changes in growth rather than an immediate drop in relative employment levels.We conduct simulations showing that commonly-used specifications in this literature, especially those that include state-specific time trends, will not accurately capture these effects.Using three separate state panels of administrative employment data, we find that the minimum wage reduces job growth over a period of several years.These effects are most pronounced for younger workers and in industries with a higher proport

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  12. MINIMUM WAGE EFFECTS ON PERMANENT VERSUS TEMPORARY MINIMUM WAGE EMPLOYMENT

    MICHELE CAMPOLIETI, MORLEY GUNDERSON, BYRON LEE · 2014 · Contemporary Economic Policy · 9 citations

    We estimate the effect of minimum wages on employment using the Master Files of the Canadian Labour Force Survey over the recent period 1997–2008. Particular attention is paid to the differences between permanent and temporary minimum wage workers—an important distinction not made in the existing literature. Our estimates for permanent and temporary minimum wage workers combined are at the lower end of estimates based on Canadian studies estimated over earlier time periods, suggesting that the adverse employment effects are declining over time for reasons discussed. Importantly, the adverse employment effects are substantially larger for permanent compared to temporary minimum wage workers;

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  16. Effects of Minimum Wage Increases on Employment in Lithuania

    Mykolas Šuminas · 2015 · Ekonomika · 1 citations

    From the advent of minimum wage it was subject to controversy: economists did not agree on its effects on the state of the economy, the welfare of both firms and workers. Empirical academic literature usually investigates employment reaction to the minimum wage fluctuations. Regrettably, such papers do not exist for Lithuania, so the literature of similar scope and topic of the US and UK (along with several other countries) is explored in this paper.The effect of the Lithuanian real minimum wage on aggregate employment is estimated by using time series models. Dependant on the specification, the real minimum wage elasticity is estimated to be –0.03–0.03 yet statically insignificant in all of

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  17. Are Minimum Wages of Importance for Employment? : A Gross Flows Analysis of Collectively Bargained Minimum Wage Employment Effects in the Swedish Hotels and Restaurants Industry 2004-2015

    Simon Ek · 2016

    This thesis analyses short-term effects of collectively bargained real minimumwage increases on separations from employment and the change in worked hours in the Swedish hotels and restaurants industry over the period 2004 to 2015. The empirical approach utilises the separate nature of separations and acquisitions in the data set, developing a wage gap specification in order to compare workers below (treatment group) to workers above but not more than 15 percent above (control group) the new real minimum wage implemented the following year. The rationale behind the model is that workers below the new minimum should be directly affected by the increase in the minimum wage while workers alread

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