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Minimum wages and poverty

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Author Info
John T. Addison
McKinley L. Blackburn

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Abstract

The principal justification for minimum wage legislation has been the claim that it would improve the economic condition of low-wage workers. Most previous analyses of the distributional effects of minimum wages have been based on simulation exercises employing restrictive assumptions that guarantee the conclusion that an increase in the minimum wage reduces poverty. In contrast, the authors of this paper adopt a more flexible "reduced-form" approach that links increases in both federal and state minima to contemporaneous changes in poverty rates. For the period 1983-96, they find indications of a poverty-reducing effect of minimum wages among teenagers and older junior high school dropouts. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 52 (1999)
Issue (Month): 3 (April)
Pages: 393-409
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Handle: RePEc:ilr:articl:v:52:y:1999:i:3:p:393-409

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June. [Downloadable!] (restricted)
  2. repec:fth:prinin:300 is not listed on IDEAS
  3. David Neumark & William Wascher, 1992. "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(1), pages 55-81, October.
  4. Lawrence Katz & Alan Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Working Papers 678, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  5. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  6. Blackburn, McKinley L., 1997. "Misspecified skedastic functions in grouped-data models," Economics Letters, Elsevier, vol. 55(1), pages 1-8, August. [Downloadable!] (restricted)
  7. Johnson, William R & Browning, Edgar K, 1983. "The Distributional and Efficiency Effects of Increasing the Minimum Wage: A Simulation," American Economic Review, American Economic Association, vol. 73(1), pages 204-11, March. [Downloadable!] (restricted)
  8. repec:fth:prinin:298 is not listed on IDEAS
  9. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lonnie K. Stevans, David N. Sessions, 2001. "Minimum Wage Policy and Poverty in the United States," International Review of Applied Economics, Taylor and Francis Journals, vol. 15(1), pages 65-75, January. [Downloadable!] (restricted)
  2. Diego Angel-Urdinola, 2008. "Can a minimum wage increase have an adverse impact on inequality? Evidence from two Latin American economies," Journal of Economic Inequality, Springer, vol. 6(1), pages 57-71, March. [Downloadable!] (restricted)
  3. David Neumark & Mark Schweitzer & William Wascher, 1998. "The Effects of Minimum Wages on the Distribution of Family Incomes: A Non-Parametric Analysis," NBER Working Papers 6536, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. David Neumark, 2009. "Alternative Labor Market Policies to Increase Economic Self-Sufficiency: Mandating Higher Wages, Subsidizing Employment, and Increasing Productivity," NBER Working Papers 14807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Miguel Székely, 1997. "Policy Options for Poverty Alleviation," RES Working Papers 4062, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Leif Danziger, 2007. "The Elasticity of Labor Demand and the Minimum Wage," IZA Discussion Papers 3150, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. David Neumark & William Wascher, 2000. "Using the EITC to Increase Family Earnings: New Evidence and a Comparison with the Minimum Wage," JCPR Working Papers 134, Northwestern University/University of Chicago Joint Center for Poverty Research.
  8. Leif Danziger, 2006. "The Elasticity of Labor Demand and the Optimal Minimum Wage," IZA Discussion Papers 2360, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Daniel Aaronson & Sumit Agarwal & Eric French, 2008. "The consumption response to minimum wage increases," Working Paper Series WP-07-23, Federal Reserve Bank of Chicago. [Downloadable!]
  10. Addison, John T. & Blackburn, McKinley L. & Cotti, Chad D., 2008. "New Estimates of the Effects of Minimum Wages in the U.S. Retail Trade Sector," IZA Discussion Papers 3597, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Miguel Székely, 1997. "Opciones de políticas para la paliación de la pobreza," RES Working Papers 4063, Inter-American Development Bank, Research Department. [Downloadable!]
  12. Madeline Zavodny, 1998. "Why minimum wage hikes may not reduce employment," Economic Review, Federal Reserve Bank of Atlanta, issue Q 2, pages 18-28. [Downloadable!]
  13. Marianne E. Page & Joanne Spetz & Jane Millar, 2000. "Does the Minimum Wage Affect Welfare Caseloads?," JCPR Working Papers 135, Northwestern University/University of Chicago Joint Center for Poverty Research.
  14. David Neumark & William Wascher, 1997. "Do Minimum Wages Fight Poverty?," NBER Working Papers 6127, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Gindling, T.H. & Terrell, Katherine, 2008. "Minimum Wages, Globalization, and Poverty in Honduras," Working Papers RP2008/23, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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