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The effects of minimum wages on employment

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  • David Neumark

Abstract

The minimum wage has gained momentum among policymakers as a way to alleviate rising wage and income inequality. Much of the debate over this policy centers on whether raising the minimum wage causes job loss, as well as the potential magnitude of those losses. Recent research shows conflicting evidence on both sides of the issue. In general, the evidence suggests that it is appropriate to weigh the cost of potential job losses from a higher minimum wage against the benefits of wage increases for other workers.

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  • David Neumark, 2015. "The effects of minimum wages on employment," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00077
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    References listed on IDEAS

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    1. Sylvia Allegretto & Arindrajit Dube & Michael Reich & Ben Zipperer, 2017. "Credible Research Designs for Minimum Wage Studies," ILR Review, Cornell University, ILR School, vol. 70(3), pages 559-592, May.
    2. Jonathan Meer & Jeremy West, 2016. "Effects of the Minimum Wage on Employment Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 500-522.
    3. David Neumark & JM Salas & William Wascher, 2014. "More on recent evidence on the effects of minimum wages in the United States," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-26, December.
    4. Shanshan Liu & Thomas J. Hyclak & Krishna Regmi, 2016. "Impact of the Minimum Wage on Youth Labor Markets," LABOUR, CEIS, vol. 30(1), pages 18-37, March.
    5. Evan Totty, 2017. "The Effect Of Minimum Wages On Employment: A Factor Model Approach," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1712-1737, October.
    6. Clemens, Jeffrey & Wither, Michael, 2019. "The minimum wage and the Great Recession: Evidence of effects on the employment and income trajectories of low-skilled workers," Journal of Public Economics, Elsevier, vol. 170(C), pages 53-67.
    7. Hristos Doucouliagos & T. D. Stanley, 2009. "Publication Selection Bias in Minimum‐Wage Research? A Meta‐Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 406-428, June.
    8. David Powell, 2016. "Synthetic Control Estimation Beyond Case Studies Does the Minimum Wage Reduce Employment?," Working Papers 1142, RAND Corporation.
    9. Arindrajit Dube & T. William Lester & Michael Reich, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 945-964, November.
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    Cited by:

    1. David Maré & Dean Hyslop, 2021. "Minimum Wages in New Zealand: Policy and practice in the 21st century," Working Papers 21_03, Motu Economic and Public Policy Research.
    2. Robayo,Monica & Terskaya,Anastasia & Koettl-Brodmann,Stefanie, 2020. "Ex-ante Evaluation of the Impact of Increases in Minimum Wages on Labor Market Outcomes in Kosovo," Policy Research Working Paper Series 9357, The World Bank.
    3. William E. Even & David A. Macpherson, 2019. "Where Does the Minimum Wage Bite Hardest in California?," Journal of Labor Research, Springer, vol. 40(1), pages 1-23, March.
    4. Susan L. Averett & Julie K. Smith & Yang Wang, 2017. "The effects of minimum wages on the health of working teenagers," Applied Economics Letters, Taylor & Francis Journals, vol. 24(16), pages 1127-1130, September.
    5. Eralda Mitllari & Mimoza Kasimati, 2018. "Is Public Sector More Attractive than Private Sector for Albanian Millennial Employees?," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 3, September.

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