Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws

ILR Review ◽  
1992 ◽  
Vol 46 (1) ◽  
pp. 55 ◽  
Author(s):  
David Neumark ◽  
William Wascher
Keyword(s):  
Panel Data ◽  
Minimum Wage ◽  
Employment Effects

Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws

ILR Review ◽  
1992 ◽  
Vol 46 (1) ◽  
pp. 55-81 ◽  
Author(s):  
David Neumark ◽  
William Wascher
Keyword(s):  
Time Series ◽  
Young Adults ◽  
Panel Data ◽  
Minimum Wage ◽  
State Legislatures ◽  
Minimum Wages ◽  
Economic Conditions ◽  
Employment Effects ◽  
Time Series Studies

Using panel data on state minimum wage laws and economic conditions for the years 1973–89, the authors reevaluate existing evidence on the effects of a minimum wage on employment. Their estimates indicate that a 10% increase in the minimum wage causes a decline of 1–2% in employment among teenagers and a decline of 1.5–2% in employment for young adults, similar to the ranges suggested by earlier time-series studies. The authors also find evidence that youth subminimum wage provisions enacted by state legislatures moderate the disemployment effects of minimum wages on teenagers.

Reply to “Credible Research Designs for Minimum Wage Studies”

ILR Review ◽  
2017 ◽  
Vol 70 (3) ◽  
pp. 593-609 ◽  
Author(s):  
David Neumark ◽  
William Wascher
Keyword(s):  
Panel Data ◽  
Labor Markets ◽  
Minimum Wage ◽  
State Level ◽  
Minimum Wages ◽  
Negative Effects ◽  
Employment Effects ◽  
Research Designs ◽  
Wage Employment

The authors make three points in this reply to the article by Allegretto, Dube, Reich, and Zipperer (ADRZ 2017). First, ADRZ shed no new light on the sensitivity of estimated minimum wage employment effects to the treatment of trends in state-level panel data, and they make some arguments in this context that are misleading or simply wrong. Second, the key issue ADRZ emphasize—using “close controls” to account for shocks that are correlated with minimum wage changes—does not generate large differences in findings, and ADRZ do not address evidence from Neumark, Salas, and Wascher (NSW 2014a) that questions the validity of the close controls used in Allegretto, Dube, and Reich’s (ADR 2011) and Dube, Lester, and Reich’s (DLR 2010) work. Third, ADRZ ignore or dismiss a growing number of studies that address in various ways the same issue of potential correlations between minimum wages and shocks to low-skill labor markets that ADRZ argue generate spurious evidence of disemployment effects, yet often find rather large negative effects of minimum wages on low-skilled employment.

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 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

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
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