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Minimum Wages and Employment: Comment

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  • Ian Watson
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    Abstract

    Does increasing the minimum wage lead to employment losses? For many years most economists thought that the answer to this was a straightforward 'yes'. However, research during the 1990s began to overturn this conventional wisdom and showed that increases in the minimum wage did not automatically lead to employment losses. A recent Australian study, by Leigh (2003), examined the impact of statutory minimum wages in Western Australia and reached conclusions which supported the conventional view. However, close scrutiny of Leigh's article shows that it is fundamentally flawed. Despite Leigh's efforts, it remains the case that we simply do not know a great deal about the employment impact of Australia's system of minimum wages. Copyright 2004 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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    Bibliographic Info

    Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal The Australian Economic Review.

    Volume (Year): 37 (2004)
    Issue (Month): 2 (06)
    Pages: 166-172

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    Handle: RePEc:bla:ausecr:v:37:y:2004:i:2:p:166-172

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    Cited by:
    1. Lee, Wang-Sheng & Suardi, Sandy, 2010. "Minimum Wages and Employment: Reconsidering the Use of a Time-Series Approach as an Evaluation Tool," IZA Discussion Papers 4748, Institute for the Study of Labor (IZA).
    2. Jellal, Mohamed, 2012. "Maroc salaire minimum emploi et pauvreté
      [Morocco minimum wage employment and poverty]
      ," MPRA Paper 38491, University Library of Munich, Germany.

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