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Minimum wage increases in a recessionary environment

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Author Info

  • Addison, John T.
  • Blackburn, McKinley L.
  • Cotti, Chad D.

Abstract

Do seemingly large minimum-wage increases in an environment of deep recession produce clearer evidence of disemployment than is often observed in the modern minimum wage literature? This paper uses three data sets to examine the employment effects of the most recent increases in the U.S. minimum wage. We focus on two high-risk groups – restaurant-and-bar employees and teenagers – for the years 2005–2010. Although the evidence for a general disemployment effect is not uniform, estimates do suggest the presence of a negative minimum wage effect in states hardest hit by the recession.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 23 (2013)
Issue (Month): C ()
Pages: 30-39

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Handle: RePEc:eee:labeco:v:23:y:2013:i:c:p:30-39

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Minimum wages; Disemployment; Earnings; Low-wage sectors; Geographically-disparate employment trends; Recession;

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References

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  18. Neumark, David & Salas, J.M. Ian & Wascher, William, 2013. "Revisiting the Minimum Wage-Employment Debate: Throwing Out the Baby with the Bathwater?," IZA Discussion Papers 7166, Institute for the Study of Labor (IZA).
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  21. Peter Dolton & Chiara Rosazza Bondibene, 2012. "The international experience of minimum wages in an economic downturn," Economic Policy, CEPR & CES & MSH, vol. 27(69), pages 99-142, 01.
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Cited by:
  1. Bertil Holmlund, 2014. "What Do Labor Market Institutions Do?," CESifo Working Paper Series 4582, CESifo Group Munich.
  2. Saul D. Hoffman, 2014. "Are the Effects of Minimum Wage Increases Always Small? A Re-Analysis of Sabia, Burkhauser, and Hansen," Working Papers 14-06, University of Delaware, Department of Economics.

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