Minimum wage, firm dynamics, and wage inequality: Theory and evidence​

2021 ◽  
Author(s):  
Chi‐Chur Chao ◽  
Mong Shan Ee ◽  
Xuan Nguyen ◽  
Eden S. H. Yu
Keyword(s):  
Minimum Wage ◽  
Wage Inequality ◽  
Firm Dynamics ◽  
Inequality Theory

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

Lowering wage inequality with the minimum wage increase in Slovenia

2021 ◽  
Vol 13 (3) ◽  
pp. 306
Author(s):  
Suzana Laporšek ◽  
Milan Vodopivec ◽  
Matija Vodopivec
Keyword(s):  
Minimum Wage ◽  
Wage Inequality ◽  
Wage Increase ◽  
Minimum Wage Increase

Environmental policy, firm dynamics and wage inequality in developing countries

2018 ◽  
Vol 57 ◽  
pp. 70-85 ◽  
Author(s):  
Mong Shan Ee ◽  
Chi-Chur Chao ◽  
Xiangbo Liu ◽  
Eden S.H. Yu
Keyword(s):  
Developing Countries ◽  
Environmental Policy ◽  
Wage Inequality ◽  
Firm Dynamics

Reducing Wage Inequality

2016 ◽  
Vol 44 (1) ◽  
pp. 68-88 ◽  
Author(s):  
Gerhard Bosch ◽  
Claudia Weinkopf
Keyword(s):  
Minimum Wage ◽  
Wage Inequality ◽  
The State ◽  
Job Quality ◽  
High Rate ◽  
Labor Standards ◽  
Political Pressure ◽  
Collective Agreements ◽  
Nation States

This article concurs with Weiss’s critique of the myth of the powerless state, which underestimates the possibilities that remain open to nation states to take action. Even today in an environment characterized by globalized markets, nation states have at their disposal instruments that can effectively ensure high job quality. The Swedish and French examples show that the state, by means of various combinations of participative and protective labor standards, can ensure that there is a low share of low-wage workers and a high rate of coverage by collective agreements. Given sufficient political pressure, new standards, such as the minimum wage in Germany, can be put in place.

The Economic Effects of a Citywide Minimum Wage

ILR Review ◽  
2007 ◽  
Vol 60 (4) ◽  
pp. 522-543 ◽  
Author(s):  
Arindrajit Dube ◽  
Suresh Naidu ◽  
Michael Reich
Keyword(s):  
Measurement Error ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Fast Food ◽  
Economic Effects ◽  
Price Increase ◽  
Full Time ◽  
Job Tenure ◽  
Control Groups ◽  
Fast Food Restaurants

This paper presents the first study of the economic effects of a citywide minimum wage—San Francisco's adoption of an indexed minimum wage, set at $8.50 in 2004 and $9.14 by 2007. Compared to earlier benchmark studies by Card and Krueger and by Neumark and Wascher, this study surveys table-service as well as fast-food restaurants, includes more control groups, and collects data for more outcomes. The authors find that the policy increased worker pay and compressed wage inequality, but did not create any detectable employment loss among affected restaurants. The authors also find smaller amounts of measurement error than characterized the earlier studies, and so they can reject previous negative employment estimates with greater confidence. Fast-food and table-service restaurants responded differently to the policy, with a small price increase and substantial increases in job tenure and in the proportion of full-time workers among fast-food restaurants, but not among table-service restaurants.

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