The effects of minimum wages on the distribution of family incomes: a nonparametric analysis
AbstractThe primary goal of a national minimum wage floor is to raise the incomes of poor families with members in the work force. We present evidence on the effects of minimum wages on family incomes from March CPS surveys. Using non-parametric estimates of the distributions of family income relative to needs in states and years with and without minimum wage increases, we examine the effects of minimum wages on this distribution, and on the distribution of the changes in income that families experience. Although minimum wages do increase the incomes of some poor families, the evidence indicates that their net effect is, if anything, to increase the proportions of families with incomes below or near the poverty line. Thus, it would appear that reductions in the proportions of families that are poor or near-poor should not be counted among the potential benefits of minimum wages.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 0412.
Date of creation: 2004
Date of revision:
Other versions of this item:
- David Neumark & Mark Schweitzer & William Wascher, 2005. "The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 867-894.
- 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.
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-23 (All new papers)
- NEP-LAB-2005-05-23 (Labour Economics)
- NEP-LTV-2005-05-23 (Unemployment, Inequality & Poverty)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Raising the Minimum Wage: A Tired, Bad Proposal
by Veronique de Rugy in The Corner on 2013-02-13 21:01:00
- Wonkblog: Economists agree: Raising the minimum wage reduces poverty
by Mike Konczal in Ezra Klein's Wonkblog on 2014-01-04 14:00:43
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