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Who Minimum Wage Increases Bite: An Analysis Using Monthly Data from the SIPP and the CPS

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Author Info
Richard V. Burkhauser
Kenneth A. Couch
David C. Wittenburg

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Abstract

We use monthly data from the Survey of Income and Program Participation and the Current Population Survey to estimate the effect of the minimum wage. Minimum wage increases significantly reduce the employment of the most vulnerable groups in the working-age population—young adults without a high school degree (aged 20–24), young black adults and teenagers (aged 16–24), and teenagers (aged 16–19). While we also find that minimum wage increases significantly reduce the overall employment of young adults and teenagers, these more vulnerable subpopulations are even more adversely affected.

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Publisher Info
Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 67 (2000)
Issue (Month): 1 (July)
Pages: 16-40
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Handle: RePEc:sej:ancoec:v:67:1:y:2000:p:16-40

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Web page: http://www.southerneconomic.org/
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  1. Luis Eduardo Arango & Luz Adriana Flórez & Angélica María Arosemena, 2003. "El tramo corto de la estructura a plazo como predictor de expectativas de la actividad económica en Colombia," BORRADORES DE ECONOMIA 002559, BANCO DE LA REPÚBLICA. [Downloadable!]
  2. Erzo F.P. Luttmer, 2007. "Does the Minimum Wage Cause Inefficient Rationing?," NBER Working Papers 13012, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Horst Feldmann, 2005. "Labour Market Institutions and Labour Market Performance in Transition Countries," Post-Communist Economies, Taylor and Francis Journals, vol. 17(1), pages 47-82, March. [Downloadable!] (restricted)
  4. Carlos A.Arango & Angélica Pachón, . "Minimum Wages in Colombia: Holding the Middle With a Bite on the Poor," Borradores de Economia 280, Banco de la Republica de Colombia. [Downloadable!]
  5. Kosali Ilayperuma Simon & Robert Kaestner, 2003. "Do Minimum Wages Affect Non-wage Job Attributes? Evidence on Fringe Benefits and Working Conditions," NBER Working Papers 9688, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Cortes, Kalena E., 2004. "Wage Effects on Immigrants from an Increase in the Minimum Wage Rate: An Analysis by Immigrant Industry Concentration," IZA Discussion Papers 1064, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Joseph Sabia, 2009. "The Effects of Minimum Wage Increases on Retail Employment and Hours: New Evidence from Monthly CPS Data," Journal of Labor Research, Springer, vol. 30(1), pages 75-97, March. [Downloadable!] (restricted)
  8. Carlos Arango & Angélica Pachón, 2004. "Minimum Wages in Colombia: Holding the Middle with a Bite," BORRADORES DE ECONOMIA 003224, BANCO DE LA REPÚBLICA. [Downloadable!]
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