scholarly journals Employment Effects of the Federal Minimum Wage

10.3386/w0812 ◽  
1981 ◽  
Author(s):  
John Boschen ◽  
Herschel Grossman
Keyword(s):  
Minimum Wage ◽  
Employment Effects ◽  
Federal Minimum Wage

Employment Effects of the 2009 Minimum Wage Increase: New Evidence from State-Based Comparisons of Workers by Skill Level

2014 ◽  
Vol 14 (3) ◽  
pp. 695-721 ◽  
Author(s):  
Saul D. Hoffman
Keyword(s):  
Minimum Wage ◽  
Fixed Effects ◽  
Population Survey ◽  
Demographic Characteristics ◽  
Minimum Wage Increase ◽  
Employment Effects ◽  
Federal Minimum Wage ◽  
The Us ◽  
Before And After ◽  
New Evidence

Abstract In July, 2009, when the US Federal minimum wage was increased from $6.55 to $7.25, individuals in nearly one-third of all states were unaffected, since the state minimum wage already exceeded $7.25. We use this variation to make comparisons of the employment of low-skill workers with their peers across states and with workers within states who were arguably unaffected by the increase, using DID and DIDID methods. Our data come from the 2009 Current Population Survey, 4 and 5 months before and after the increase. We find little evidence of negative employment effects for teens or less-educated adults. Further control for demographic characteristics and state fixed effects have relatively small effects on the size and significance of estimated effects.

scholarly journals The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector

2013 ◽  
Vol 14 (3) ◽  
pp. 282-315 ◽  
Author(s):  
Bodo Aretz ◽  
Terry Gregory ◽  
Melanie Arntz
Keyword(s):  
Minimum Wage ◽  
Scale Effects ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Employment Effects ◽  
Eastern Germany

Abstract This study contributes to the sparse literature on employment spillovers of minimum wages. We exploit the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution.

scholarly journals The Washington State Merged Longitudinal Administrative Database

2018 ◽  
Vol 3 (5) ◽  
Author(s):  
Jennifer Romich ◽  
Mark Long ◽  
Scott Allard ◽  
Anne Althauser
Keyword(s):  
Minimum Wage ◽  
Race And Ethnicity ◽  
Data Access ◽  
Well Being ◽  
Vital Statistics ◽  
Washington State ◽  
Economic Effects ◽  
Administrative Database ◽  
Administrative Dataset ◽  
Federal Minimum Wage

This paper describes a uniquely comprehensive database constructed from merged state administrative data.  State Unemployment Insurance (UI) systems provide an important source of data for understanding employment effects of policy interventions but have also lack several key types of information: personal demographics, non-earnings income, and household associations.  With UI data, researchers can show overall earnings or employment trends or policy impacts, but cannot distinguish whether these trends or impacts differ by race or gender, how they affect families and children, or whether total income or other measure of well-being change. This paper describes a uniquely comprehensive new administrative dataset, the Washington Merged Longitudinal Administrative Database (WMLAD), created by University of Washington researchers to examine distributional and household economic effects of the Seattle $15 minimum wage ordinance, an intervention that more than doubled the federal minimum wage.  WMLAD augments UI data with state administrative voter, licensing, social service, income transfer, and vital statistics records. The union set of all individuals who appear in any of these agency datasets will provide a near-census of state residents and will augment UI records with information on age, sex, race/ethnicity, public assistance receipt, and household membership. In this paper, we describe 1.) our relationship with the Washington State Department of Social and Health Services that permits this data access and allows construction of this dataset using restricted personal identifiers; 2.) the merging and construction process, including imputing race and ethnicity and constructing quasi-households from address co-location; and 3.) planned benchmarking and analysis work.

scholarly journals RAISING THE MINIMUM WAGE OF THE US WORKFORCE

2021 ◽  
pp. 41-43
Author(s):  
Kshama Mumbai
Keyword(s):  
Minimum Wage ◽  
The United States ◽  
Purchasing Power ◽  
Legislative Action ◽  
The Great Depression ◽  
Federal Minimum Wage ◽  
Fair Labor Standards Act ◽  
To Come ◽  
And Gender ◽  
Wage Floor

“The Lawrence Textile Strike, also known as the Bread and Roses Strike”, prompted the first minimum wage law in the United States in 1912. Various states followed suit over the next two decades, and in 1938, at the height of the Great Depression, Congress passed the Fair Labor Standards Act, which created a federal minimum wage (FLSA).The basic incentive behind the introduction of the Act was to reduce income inequality.A rise in minimum wage acts as a form of relocation of wealth from higher-income people to lower-income people. In principle, Congress amends the FLSA on a regular basis to raise the federal minimum wage to levels necessary for even the lowest-paying workforces in the economy.It also aims to help low-wage workers benefit from overall economywide advances in living standards. However, this has historically not always been the case. In 1968, The Poor People’s 1 Campaign started because of not raising the minimum wage to sufficient levels . The explicit purpose of the federal minimum wage is to help increase consumer purchasing power which stimulates the economy and to keep America's workforces out of poverty.However,the law failed to include the automatic cost of living adjustments and led to inflation eroding the real value of the minimum wage over time. There is a dire need for legislative action to raise the nation’s wage floor, more so than ever during the COVID-19 pandemic.Unless consumer's purchasing power is increased,it will be difficult to come out of this recession.Further,the minimum wage is a direct concern for poverty levels and gender / racial inequality.This paper aims to analyze previous work on the issue and provide further recommendations for the same.

Minimum Wage Employment Effects and Labor Market Concentration

2019 ◽  
Author(s):  
José Azar ◽  
Emiliano Huet-Vaughn ◽  
Ioana Elena Marinescu ◽  
Bledi Taska ◽  
Till Von Wachter
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Market Concentration ◽  
Employment Effects ◽  
Wage Employment

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 impact of minimum wages for domestic workers in Bloemfontein, South Africa

2010 ◽  
Vol 8 (1) ◽  
Author(s):  
Phillip F. Blaauw ◽  
Louis J. Bothma
Keyword(s):  
South Africa ◽  
Minimum Wage ◽  
Structural Changes ◽  
Domestic Workers ◽  
Real Wages ◽  
Employment Effects ◽  
Course Of Action ◽  
Minimum Wage Legislation ◽  
The Impact

Orientation: The number of domestic workers in South Africa has decreased in the last decade, seemingly corresponding with efforts by government to increase regulation.Research purpose: The purpose of this study was to investigate possible structural changes in this labour market over the last decade, as well as the possible employment effects of the latest minimum wage provisions.Motivation for the study: Previous studies on the topic were carried out either prior to, or just after, the implementation of the minimum wage legislation for domestic workers. Now, five years after implementation, the conclusions and predictions of these studies need to be evaluated.Research design, approach and method: The study utilised a repeat survey in the suburb of Langenhoven Park in Bloemfontein, where two previous microstudies had been conducted. Structural interviews were conducted with a sample of 132 respondents and the data analysed.Main findings: There are now fewer domestic workers working for more employers, than there were ten years ago. In contrast to predictions from the literature, these changes mostly occurred before the implementation of the legislation. Real wages and legislative compliance improved for those who remained employed.Practical implications: The task of balancing the improvement of the lives of domestic workers and the possible adverse consequences of the legislation, in the form of job losses, remains as daunting as it was ten years ago.Contribution: Literature predicts changes in the market for domestic workers to be long term. This study shows that most changes took place before the implementation of the legislation as employers decided on their course of action.

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