Textbook Treatments of Minimum-Wage Legislation

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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MINIMUM WAGE LEGISLATION IN THE UNITED STATES: COMMENT

Economic Inquiry ◽

10.1111/j.1465-7295.1977.tb00457.x ◽

1977 ◽

Vol 15 (1) ◽

pp. 135-138 ◽

Cited By ~ 7

Author(s):

FREDERIC B. SISKIND

Keyword(s):

United States ◽

Minimum Wage ◽

The United States ◽

Minimum Wage Legislation

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

Review of Economics and Statistics ◽

10.1162/rest_a_00981 ◽

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.

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The consequences of minimum wage legislation

Economic Affairs ◽

10.1111/1468-0270.00020 ◽

1997 ◽

Vol 17 (2) ◽

pp. 5-14 ◽

Cited By ~ 2

Author(s):

Walter Y. Oi

Keyword(s):

Minimum Wage ◽

Minimum Wage Legislation

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John Bates Clark's Defense of Mandatory Arbitration and Minimum Wage Legislation

Journal of the History of Economic Thought ◽

10.1080/10427710050025448 ◽

2000 ◽

Vol 22 (2) ◽

pp. 251-263 ◽

Cited By ~ 13

Author(s):

Robert E. Prasch

Keyword(s):

Economic Theory ◽

Political Philosophy ◽

Political Economy ◽

Income Distribution ◽

Minimum Wage ◽

Marginal Product ◽

Minimum Wage Legislation ◽

Development Of Economic Theory ◽

Instrumental Role ◽

The Ideal

The ideal of Political Economy is not unrestricted competition, but competition that is truly free, because controlled by justice and by law. The distinction between freedom and license needs to be preserved in this department of political philosophy. With that distinction clearly maintained, we may still retain, in economics as in politics, our beautiful watchword, liberty (John Bates Clark 1879, p. 167).John Bates Clark has had a formidable impact on the development of economic theory and the theory of income distribution. In addition, Clark's marginal product theory of distribution has often played an instrumental role in the defense of laissez-faire policies. His theory has been used to criticize a wide variety of market interventions, including minimum wage legislation. As a result it is not surprising that Clark's theory of income distribution, and Clark himself, have drawn more than a few critics.

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