State Responses to Federal Inaction and Growing Inequality

2017 ◽  
Author(s):  
William W. Franko ◽  
Christopher Witko
Keyword(s):  
Federal Government ◽  
Minimum Wage ◽  
State Government ◽  
Public Awareness ◽  
Aggregate Data ◽  
The State ◽  
Minimum Wages ◽  
Political Factors ◽  
Wage Increases ◽  
State Responses

In this chapter the authors return to aggregate data to examine how the state minimum wage has responded to a growing awareness of inequality and other state political factors. The minimum wage was initially pursued by the states a number of years before the federal government adopted a minimum wage in the 1930s. However, the minimum wage law is still jointly controlled by the states and the federal government, allowing us to directly examine how federal inaction in raising the minimum wage spurs state minimum wage increases. The results show that federal inaction, a public awareness of growing inequality, and state government liberalism are significant predictors of increases in state minimum wages. The minimum wage is more likely to be increased in states with the initiative, even sometimes in states that are usually considered to be relatively conservative.

The effect of minimum wages on consumption in Canada

2020 ◽  
pp. 103530462094995
Author(s):  
Young Cheol Jung ◽  
Adian McFarlane ◽  
Anupam Das
Keyword(s):  
Minimum Wage ◽  
Adult Population ◽  
Retail Trade ◽  
Minimum Wages ◽  
The Real ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
Wage Increases

We use Canadian data over the period of 1991Q1 to 2019Q2 to examine the effect of higher minimum wages on consumption, measured as the real retail trade sales per adult population. Such an examination is rare in the extant literature and it is timely given the increasing debate concerning the stimulus versus inflationary effects arising from wage polices because of COVID-19 global pandemic. We apply the autoregressive distributed lag model to determine the causal relationship between these variables. We find one long-run cointegrating relationship that runs from the real minimum wage to the real retail trade sales. In addition, we find that a 1% increase in the minimum wage is associated with almost a 0.5% increase in real retail trade sales in the long run. While our findings rest on several statistical assumptions, there is strong evidence in support of the position that minimum wage strengthens aggregate consumer spending, and thereby the standard of living, economic growth and stability. This is a position that differs from the conclusions drawn from mainstream academic and policy debates on the economic usefulness and efficacy of minimum wage increases. JEL Codes: C30, E21, E24

scholarly journals The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns

2019 ◽  
Vol 20 (3) ◽  
pp. 293-329 ◽  
Author(s):  
David Neumark
Keyword(s):  
United States ◽  
Minimum Wage ◽  
Past Research ◽  
The United States ◽  
Minimum Wages ◽  
Definitive Answer ◽  
Employment Effects ◽  
Conflicting Evidence ◽  
Known Unknowns ◽  
Wage Increases

Abstract I discuss the econometrics and the economics of past research on the effects of minimum wages on employment in the United States. My intent is to try to identify key questions raised in the recent literature, and some from the earlier literature, which I think hold the most promise for understanding the conflicting evidence and arriving at a more definitive answer about the employment effects of minimum wages. My secondary goal is to discuss how we can narrow the range of uncertainty about the likely effects of the large minimum wage increases becoming more prevalent in the United States. I discuss some insights from both theory and past evidence that may be informative about the effects of high minimum wages, and try to emphasize what research can be done now and in the near future to provide useful evidence to policymakers on the results of the coming high minimum wage experiment, whether in the United States or in other countries.

scholarly journals The Pass-Through of Minimum Wages into US Retail Prices: Evidence from Supermarket Scanner Data

2020 ◽  
pp. 1-99
Author(s):  
Tobias Renkin ◽  
Claire Montialoux ◽  
Michael Siegenthaler
Keyword(s):  
Minimum Wage ◽  
State Level ◽  
Minimum Wages ◽  
Scanner Data ◽  
Consumer Prices ◽  
Retail Prices ◽  
Minimum Wage Legislation ◽  
Pass Through ◽  
Wage Increases ◽  
Grocery Products

This paper estimates the pass-through of minimum wage increases into the prices of US grocery and drug stores. We use high-frequency scanner data and leverage a large number of state-level increases in minimum wages between 2001 and 2012. We find that a 10% minimum wage hike translates into a 0.36% increase in the prices of grocery products. This magnitude is consistent with a full pass-through of cost increases into consumer prices. We show that price adjustments occur mostly in the three months following the passage of minimum wage legislation rather than after implementation, suggesting that pricing of groceries is forward-looking.

The Quest for Fairness in Australian Minimum Wages

2011 ◽  
Vol 53 (5) ◽  
pp. 662-680 ◽  
Author(s):  
Joshua Healy
Keyword(s):  
Minimum Wage ◽  
Real Wage ◽  
Industrial Relations ◽  
Minimum Wages ◽  
National System ◽  
Relative Wages ◽  
Rate Of Increase ◽  
Worthy Goal ◽  
Wage Increases ◽  
Over Time

The attainment of ‘fairness’ is widely regarded as a worthy goal of setting minimum wages, but opinions differ sharply over how to achieve it. This article examines how interpretations of fairness shaped the minimum wage decisions of the Australian Industrial Relations Commission between 1997 and 2005. It explores the Commission's approaches to three aspects of fairness in minimum wages: first, eligibility for increases; second, the form of increase; and third, the rate of increase over time. The Australian Industrial Relations Commission consistently gave minimum wage increases that were expressed in dollar values and applied to all federal awards. Its decisions delivered real wage increases for the lowest paid, but led to falls in real and relative wages for the majority of award-reliant workers. Fair Work Australia, the authority now responsible for setting minimum wages in the national system, appears apprehensive about parts of the Australian Industrial Relations Commission's legacy and has foreshadowed a different approach, particularly with respect to the form of adjustment.

scholarly journals Políticas públicas para o urbano em Guarapuava, PR, Brasil

Terr Plural ◽  
2019 ◽  
Vol 13 (3) ◽  
pp. 73-89
Author(s):  
Tatiellen Cristina Prudentes ◽  
Márcia Silva
Keyword(s):  
Local Government ◽  
Federal Government ◽  
Urban Space ◽  
Public Policies ◽  
The State ◽  
The Political ◽  
Political Factors ◽  
The Third ◽  
Urban Intervention ◽  
Governmental Institutions

We analyze the forms of urban intervention based on public policies, with resources from the federal government, in a medium-sized city in the state of Paraná, between 2013 and 2016. The results are presented in three sections. In the first, we review concepts and themes focused on public policies; In the second one, we present and discuss documentary data, from governmental and non-governmental institutions, and interviews. In the third one, we describe the covenants established between the federal government and the local government, in terms of public policies, to an intervention of the urban space. It is concluded that, in Guarapuava, the political factors are very intervening in the distribution of public policies in order to promote, enhancement and perpetuate certain groups off and in power, especially family groups and their political and party alignments.

scholarly journals The COVID States Project #20: Public opinion around federal and state reactions to COVID-19

2021 ◽  
Author(s):  
David Lazer ◽  
Alexi Quintana ◽  
Jon Green ◽  
Katherine Ognyanova ◽  
Hanyu Chwe ◽  
...  
Keyword(s):  
Public Opinion ◽  
Federal Government ◽  
State Government ◽  
State Level ◽  
The State ◽  
State Governments ◽  
Prefer State ◽  
Consistent Picture

In every month, April through October of 2020, we surveyed individuals in every state about how federal and state governments are reacting to the pandemic. We found a remarkably consistent picture of public opinion: respondents prefer state governments over the federal government when it comes to COVID-19. Out of 8 waves in 50 states & DC − a total of 408 surveys at the state level − in 402 state-level surveys more people in the state felt the state government was reacting “about right” to the COVID-19 outbreak as compared to the federal government; and only 6 times did people in a state choose the federal government over their state government.

scholarly journals Minimum Wages and Retirement

ILR Review ◽  
2019 ◽  
Vol 73 (1) ◽  
pp. 153-177
Author(s):  
Mark Borgschulte ◽  
Heepyung Cho
Keyword(s):  
Social Security ◽  
Labor Supply ◽  
Minimum Wage ◽  
Older Workers ◽  
Employment Outcomes ◽  
Minimum Wages ◽  
Financial Resources ◽  
Positive Effects ◽  
Wage Increases ◽  
Social Security Beneficiaries

The authors study the effect of the minimum wage on the employment outcomes and Social Security claiming of older US workers from 1983 to 2016. The probability of work at or near the minimum wage increases substantially near retirement, and previous researchers and policies suggest that older workers may be particularly vulnerable to any disemployment effects of the minimum wage. Results show no evidence that the minimum wage causes earlier retirements. Instead, estimates suggest that higher minimum wages increase earnings and may have small positive effects on the labor supply of workers in the key ages of 62 to 70. Consistent with increased earnings and delayed retirement, higher minimum wages decrease the number of Social Security beneficiaries and amount of benefits disbursed. The minimum wage appears to increase financial resources for workers near retirement.

scholarly journals Adjustments to Minimum Wages in China: Cost-Neutral Offsets

2015 ◽  
Vol 70 (3) ◽  
pp. 510-531 ◽  
Author(s):  
Jing Wang ◽  
Morley Gunderson
Keyword(s):  
Minimum Wage ◽  
Qualitative Interviews ◽  
Unintended Consequences ◽  
Minimum Wages ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Overtime Work ◽  
Zero Effect ◽  
Wage Increases ◽  
The Cost

Summary Based on qualitative interviews of workers, managers and labour inspectors in China, we examine how employers adjust, often in subtle fashions, to minimum wage increases. Our findings highlight the “law of unintended consequences” in that their effects are often “undone” or offset by subtle adjustments such as reductions in fringe benefits and in overtime work and overtime pay premiums that are otherwise valued by employees. Employees often feel that they are no better off in spite of minimum wage increases because of these offsetting adjustments. This study also suggests possible reasons for the small or zero effect of minimum wage on employment in China. Lack of enforcement may be one of the reasons, but the employees we interviewed seem well aware of the legal minimum wage and employers do not want to get involved in disputes over this matter. For employers who would otherwise be affected by the minimum wage increase, the cost increase is mitigated by the offsetting adjustments. As a result, minimum wages do not seem to weaken the competitive position of employers in China.

Do Minimum Wage Increases Affect SNAP Benefits?

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Thomas Snyder ◽  
Senayt Rinkevich ◽  
Weici Yuan
Keyword(s):  
Minimum Wage ◽  
Fixed Effects ◽  
State Level ◽  
Minimum Wages ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Assistance Program ◽  
Data Set ◽  
Nutrition Assistance ◽  
Wage Increases

Abstract The recession of the late 2000s accompanied a steep increase in the number of people on the U.S. federal Supplemental Nutrition Assistance Program (SNAP). The economy recovered, yet the number of people on SNAP remained relatively high. This study investigates whether increases in minimum wages affected the number of SNAP beneficiaries and the per-capita cost of the program. Economic reasoning suggests a minimum wage increase can decrease poverty through higher wages or increase poverty by enacting a barrier to work. Using a panel data set (1997–2015) at the state level, two-way fixed effects estimates demonstrate a nonlinear relationship between minimum wages and SNAP benefits. At low minimum wages, increases in the minimum wage reduce SNAP enrollment and benefits; however, at high minimum wages, increases in the minimum wage increase SNAP enrollment and benefits. Twenty states have already passed the minimum wage turning point. Further increases can lead to more SNAP participants.

PREEMPTION BY FEDERAL GOVERNMENT IN THE FIELD OF FOOD REGULATION1

1962 ◽  
Vol 25 (9) ◽  
pp. 286-290
Author(s):  
Benjamin G. Habberton
Keyword(s):  
Federal Government ◽  
State Government ◽  
The State ◽  
Government Control ◽  
Federal Law ◽  
Commercial Activity ◽  
State Food ◽  
Judicial Decisions ◽  
Food Standards ◽  
State Requirement

It frequently happens that the federal government and a state government attempt to regulate the same commercial activity — or what may appear to be the same commercial activity. If the laws or regulations are in agreement, there is no problem. But suppose they are not in agreement. Here, the problems arise. The teaching of the numerous judicial decisions appears to be that even if the state requirement in issue is different from the federal, if it is not in direct conflict with the federal, and does not interfere with the policy or administration of the federal, the two may co-exist and both be enforced. But if the state requirement is in direct conflict with the federal and interferes with the policy or administration of the federal, the federal law or regulation will prevail over the state, and the state law or regulation will be stricken down. In this situation, the federal government with its paramount constitutional power to regulate interstate commerce, is said to have occupied or preempted the particular field of government control and thereby to have excluded regulation by the state. This doctrine, articulated in the foregoing or comparable language, has been applied in numerous cases involving the regulation of commerce in food products. There are cases, for example, involving federal versus state food standards, and these are of particular interest.

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