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Employment effects of minimum wages

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  • David Neumark

    (University of California—Irvine, USA, and IZA, Germany)

Abstract

The potential benefits of higher minimum wages come from the higher wages for affected workers, some of whom are in low-income families. The potential downside is that a higher minimum wage may discourage employers from using the low-wage, low-skill workers that minimum wages are intended to help. Research findings are not unanimous, but evidence from many countries suggests that minimum wages reduce the jobs available to low-skill workers.

Suggested Citation

  • David Neumark, 2014. "Employment effects of minimum wages," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-6, May.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:6
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    References listed on IDEAS

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    Cited by:

    1. Irit Keynan, 2016. "Is neoliberalism consistent with individual liberty? Friedman, Hayek and Rand on education employment and equality," International Journal of Teaching and Education, International Institute of Social and Economic Sciences, vol. 4(4), pages 30-47, December.
    2. Brian Fabo & Sharon Sarah Belli, 2017. "(Un)beliveable wages? An analysis of minimum wage policies in Europe from a living wage perspective," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-11, December.
    3. Arni, Patrick & Eichhorst, Werner & Spermann, Alexander & Zimmermann, Klaus F., 2014. "Mindestlohnevaluation jetzt und nicht erst 2020," IZA Standpunkte 70, Institute of Labor Economics (IZA).
    4. Jaana Remes, Jan Mischke and Mekala Krishnan, 2018. "Solving the Productivity Puzzle: The Role of Demand and the Promise of Digitization," International Productivity Monitor, Centre for the Study of Living Standards, vol. 34, pages 28-51, Fall.
    5. Sergei Guriev & Biagio Speciale & Michele Tuccio, 2019. "How do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(1), pages 37-76.
    6. Natalia Mishagina & Claude Montmarquette, 2018. "The Demand for Economic Policies, Beliefs, and Willingness-to-Pay: The Case of the Minimum Wage Policy in Quebec," CIRANO Project Reports 2018rp-14, CIRANO.
    7. Joachim Möller & Karl Brenke & Gert Wagner & Thorsten Schulten & Gustav Horn & Hagen Lesch & Alexander Mayer & Lisa Schmid & Patrick Arni & Werner Eichhorst & Alexander Spermann & Klaus Zimmermann, 2014. "Das Mindestlohngesetz — Hoffnungen und Befürchtungen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(6), pages 387-406, June.
    8. Obadić, Alka & Arčabić, Vladimir & Rogić Dumančić, Lucija, 2023. "Club convergence of labor market institutions in the European Union," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 876-896.
    9. Stephen Bazen & Vêlayoudom Marimoutou, 2018. "Federal Minimum Wage Hikes Do Reduce Teenage Employment," AMSE Working Papers 1850, Aix-Marseille School of Economics, France.
    10. Mishagina, Natalia & Montmarquette, Claude, 2021. "The role of beliefs in supporting economic policies: The case of the minimum wage," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1059-1087.
    11. Y. Yuryk, 2020. "Informal Employment In Ukraine And Formation Of Institutional Conditions Of Its Minimization," Economy and Forecasting, Valeriy Heyets, issue 4, pages 36-59.
    12. Arni, Patrick & Eichhorst, Werner & Pestel, Nico & Spermann, Alexander & Zimmermann, Klaus F., 2014. "Kein Mindestlohn ohne unabhängige wissenschaftliche Evaluation," IZA Standpunkte 65, Institute of Labor Economics (IZA).
    13. Jo Ritzen & Klaus Zimmermann, 2014. "A vibrant European labor market with full employment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    14. repec:hal:spmain:info:hdl:2441/73bviabv8o80nrgh0mm5h3163q is not listed on IDEAS
    15. Yann Thommen, 2019. "Réformes structurelles et résilience des marchés du travail en zone euro," Post-Print hal-04048450, HAL.
    16. Arpaia, Alfonso & Cardoso, Pedro & Kiss, Aron & Van Herck, Kristine & Vandeplas, Anneleen, 2017. "Statutory Minimum Wages in the EU: Institutional Settings and Macroeconomic Implications," IZA Policy Papers 124, Institute of Labor Economics (IZA).
    17. Obeng, Samuel Kwabena, 2015. "An Empirical Analysis of the Relationship between Minimum Wage, Investment and Economic Growth in Ghana," African Journal of Economic Review, African Journal of Economic Review, vol. 3(2), July.
    18. Sergei Guriev & Biagio Speciale & Michele Tuccio, 2019. "How Do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession," SciencePo Working papers Main halshs-02087840, HAL.

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    More about this item

    Keywords

    minimum wages; employment effects;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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