The Dynamics of Poverty and the Promotion of Transition from Non-Regular to Regular Employment in Japan: Economic Effects of Minimum Wage Revision and Job Training Support

2013 ◽  
Vol 64 (2) ◽  
pp. 147-200 ◽  
Author(s):  
Yoshio Higuchi
Author(s):  
Jennifer Romich ◽  
Mark Long ◽  
Scott Allard ◽  
Anne Althauser

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.


2020 ◽  
Vol 240 (2-3) ◽  
pp. 351-386 ◽  
Author(s):  
Helge Braun ◽  
Roland Döhrn ◽  
Michael Krause ◽  
Martin Micheli ◽  
Torsten Schmidt

AbstractThis paper analyzes the introduction of the German minimum wage in 2015 in a structural model geared to quantitatively assess its long-run economic effects. We first employ a simple neoclassic model where wages equal their marginal product, then extend this model to two sector economy, and finally introduce search and matching frictions. Even though all model variants remain highly stylized, they yield quantitative insights on the importance of different mechanisms and channels through which minimum wages affect outcomes in the long run. In this framework, the minimum wage has a strong negative effect on employment. When sectors are differently affected by the minimum wage, sectoral relative price changes play an important quantitative role. Other labor market policies and institutions are important for the transmission of minimum wage policy on labor market market outcomes.


ILR Review ◽  
2007 ◽  
Vol 60 (4) ◽  
pp. 522-543 ◽  
Author(s):  
Arindrajit Dube ◽  
Suresh Naidu ◽  
Michael Reich

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.


2019 ◽  
Vol 20 (3) ◽  
pp. 330-355 ◽  
Author(s):  
Sebastian Schmitz

AbstractIn January 2015, Germany introduced a federal, statutory minimum wage of 8.50 € per hour. This study evaluates the effects of this policy on regular and marginal employment and on welfare dependency. Based on the county-level administrative data, this study uses the difference-in-differences technique, exploiting regional variation in the bite of the minimum wage, i.e., the county-specific share of employees paid less than 8.50 € before the introduction of the minimum wage. The minimum wage had a considerable negative effect on marginal employment. There is also some indication that regular employment was slightly reduced. Concerning welfare dependency, the minimum wage reduced the number of working welfare recipients, with some indication that about one half of them left welfare receipt due to the minimum wage.


Author(s):  
Aneta Mikuła

The minimum wage is the wage policy instrument, entailing both economic and social consequences. Supporters of the minimum wage emphasize its role in reducing poverty and reducing income inequalities. In turn, opponents focus on its economic effects, i.e. increase in labor costs and decline in employment. The article focuses on identifying the impact of the minimum wage on reducing poverty and income inequality. The first part contains definitions and the economic and social functions of the minimum wage. The next section presents changes in the minimal salary level in Poland and its relation to the average salary in the years 2003–2014. The rest of the article attempts to assess the effectiveness of raising the minimum wage in combating poverty and reducing income inequality. The effectiveness of this solution is minimal, both in terms of the whole society, as well as socio-economic group, which should benefit most from these effects, i.e. employees.


2020 ◽  
Vol 240 (2-3) ◽  
pp. 295-319 ◽  
Author(s):  
Holger Bonin ◽  
Ingo E. Isphording ◽  
Annabelle Krause-Pilatus ◽  
Andreas Lichter ◽  
Nico Pestel ◽  
...  

AbstractThis paper studies the effects of the introduction of Germany’s statutory minimum wage in 2015 on employment and unemployment on the level of regional labor markets. Using variation in the regional exposure to the new wage floor, we employ a difference-in-differences approach that compares the evolution of employment and unemployment between regions with varying minimum wage bites. Overall, we find no statistically significant effect of the introduction of the German minimum wage on regular employment subject to social insurance, but a statistically significant negative effect on marginal employment. The reduction is not accompanied by a proportional increase in unemployment.


2019 ◽  
Vol 20 (3) ◽  
pp. 356-381 ◽  
Author(s):  
Alfred Garloff

Abstract Using the variation across space, age and sex and the variation across space and sectors, we analyse the relationship between the minimum wage and (un)employment growth in 2015. We use difference-in-differences specifications and instrument the bite of the minimum wage by the lagged bite. The results provide stable evidence that a higher minimum wage bite is related to a higher growth rate of regular employment. We also find stable evidence that a higher minimum wage bite is related to a lower growth rate of marginal employment. These results are consistent with a transformation of marginal to regular jobs. The relationship to total employment is slightly positive in our preferred specification but insignificant or negative in others. For unemployment, we find a positive relationship between the bite of the minimum wage and unemployment growth in our preferred specification but insignificant or negative results in others.


2020 ◽  
Vol 240 (2-3) ◽  
pp. 269-294 ◽  
Author(s):  
Martin Friedrich

AbstractThis paper evaluates the short to medium run employment effects of the 2015 introduction of a statutory minimum wage in Germany. The effect of the policy is recovered from variation in the bite of the minimum wage across occupations using a difference-in-differences estimator. The analysis reveals that the reform only had a small impact on employment and highlights the importance of regional effect heterogeneity. In East Germany, marginal employment decreased by about 18,000 jobs in the short run and 52,000 jobs in the medium run, respectively, due to the minimum wage. In West Germany, no negative employment effects are detectable, but regular employment increased temporarily because of the reform. The medium run estimates include the impact of the first marginal increase of the wage floor from €8.50 to €8.84 in 2017.


2017 ◽  
Vol 6 (2) ◽  
pp. 171
Author(s):  
Santos Miguel Ruesga-Benito ◽  
Fernando Ignacio González-Laxe ◽  
Jose Picatoste

The minimum wage establishment has its origin in the first third of the last century. Since its creation has been a focus of continuing controversy and an unfinished debate on economics field. This work reviews the effects of the minimum wage on employment and other macroeconomic variables, from both theoretical and empirical perspectives. The method is based on the revision of the literature and the main economic indicators. The central contribution of this paper is providing a general reflection on theoretical and empirical analysis about the debate on minimum wage and its effects. The results showed that some labor policies are taking account the effects of austerity strategies, shifting the attention towards the implementation of minimum wages or their updating, in order to reduce the growing inequalities in the distribution of income, and even poverty levels.


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